US food major Cargill to invest US$50m to double cooked poultry products capacity in China
Cargill is applying insights gained from its e-commerce business to create food products that cater to Chinese tastes
Cargill will invest US$50 million to double its cooked poultry foods capacity in China, as the global agricultural trading major aims to cater to evolving tastes in the country, according to the head of its China meats business.
The company’s expanded capacity at its plant in Chuzhou in eastern Anhui province will start operations in 2019 and make mainly ready-to-eat, cooked poultry products, said Omar Sadeque, president of Cargill Animal Protein in Greater China. The plant was originally opened in 2013 and covers everything from breeding and raising to processing.
He said the world’s leading agricultural trader will mainly focus on investing in the cooked foods segment as it posts double-digit growth and complements its bigger yet slowing single-digit growth of its raw meats business.
The cooked foods business would enjoy an upper hand in five years, he said, noting it could come from new investments or acquisitions.
Cargill is trying to respond faster to changing consumer tastes in China, as its clients such as McDonald’s and KFC face a more challenging market in the country
“The potential [for growth] now has to be more driven by better meeting consumers’ changing tastes,” Sadeque told the South China Morning Post in Shanghai. “Whoever can help entice consumers with new offerings, products, experiences and emotional connections, they will have continued growth in China.”
