Cofco Meat, a subsidiary of Cofco Group and integrated pork and poultry company, is bringing in a consortium of investors including Kohlberg Kravis Roberts (KKR), Baring Private Equity Asia, HOPU Investment Management Co., and Boyu Capital to form a strategic partnership to develop large scale, industrialized hog farming operations and meat processing plants in China. Cofco Meat was established five years ago and is one of the largest hog producers in China which markets its fresh and processed meats under the brands Jaycome and Maverick. Currently large scale hog operations with annual output of 50,000 head or higher account for less than 1% of domestic supply in the country, however large scale hog farms in China are expected to increase six-fold by 2020 according to the U.S. Department of Agriculture and the China Animal Industry Yearbook. China accounts for more than 50% of global annual pork consumption and larger scale operations are more equipped to meet quality and safety standards and domestic demand through greater operational efficiency than smaller farms. Financial terms of the strategic partnership have not been released.
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