Shuanghui Development, a key player in China’s meat processing sector, anticipates a significant rise in its meat imports, targeting CNY 7.35 billion (USD 1 billion) in transactions by 2025 through its global procurement arm, Rotary Vortex Limited. This projection marks a recovery from diminished imports in recent years, driven by strategic changes such as lowering frozen product inventories and diversifying procurement. Concurrently, Shuanghui has strengthened its Environmental, Social, and Governance (ESG) strategy, renaming its Strategic Committee and prioritizing sustainability initiatives like climate adaptation and resource management. This dual focus on growth and ESG aligns with broader industry trends addressing urbanization-driven demand and sustainability.
Shuanghui Development, a prominent player in China’s meat processing industry, has outlined an ambitious forecast for its meat import operations. By 2025, the company anticipates transactions worth CNY 7.35 billion (approximately USD 1 billion) with Rotary Vortex Limited, its global procurement arm. This growth trajectory signals a recovery from lower import volumes in 2023, which were influenced by reduced price differentials between domestic and international pork.
Rebounding Meat Imports
Shuanghui’s import activity saw a downturn in recent years, with trade values dropping from CNY 12.1 billion in 2020 to CNY 6.2 billion in 2022. However, the company achieved nearly 98% of its CNY 6 billion import target in 2023 and has projected a target of CNY 6.8 billion for 2024. As of October 2024, Shuanghui had fulfilled CNY 5.1 billion of this, with further growth expected.
The rebound has been driven by strategic shifts, including reducing frozen product inventories to record lows and diversifying procurement channels. These efforts aim to address market challenges such as fluctuating price gaps.
Commitment to ESG Principles
Shuanghui has enhanced its focus on environmental, social, and governance (ESG) frameworks. Its board has renamed its Strategic Committee to the Strategic and Sustainable Development Committee, reinforcing its dedication to sustainability. Key initiatives include:
- Establishing an ESG management office for sustainability planning and compliance reporting.
- Prioritizing areas such as climate adaptation, resource management, occupational safety, and ethical business practices.
Implications for China’s Meat Industry
Shuanghui’s strategy reflects broader trends in the Chinese meat sector, where companies are balancing market demands with sustainability goals. As urbanization and dietary shifts accelerate, Shuanghui’s emphasis on ESG principles aligns with the industry’s need for long-term environmental and social accountability.
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