Though the world might be ‘sick’ of hearing about the much talked about food safety scare concerning expired chicken used in a Chinese factory, some are rejoicing at this fact. China’s biggest pork producer, WH Group increased as much as 10% of trade since beginning their relationship with Hong Kong recently. Being one the third largest IPO group around the Asia Pacific, it is good for the company to see the $4.7 billion dollars used to hire American hog producer Smithfield in part to bring Western expertise to China is finally paying off.
China currently holds the word’s largest pork industry, raising and consuming about half of the world’s pigs. However, the lightly regulated agricultural industry and constant food safety scares around China has meant that consumers prefer to get off shore products. Having changed their name to WH group, thus giving it a more ‘Western’ vibe, the international identity might prove to work in favour for the company at this point in time. Having joined Smithfield’s, WH Group now has access to their 460 farms that raise approximately 15.8 million hogs a year.
Furthermore, this has effected the farming culture of China. Commercial production has been favoured upon by the consumers over small-scale or backyard farmers for safety reasons.
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