A Case Study of Shuanghui International's Strategic Acquisition of Smithfield Foods

Hongjun Tao and Chaoping Xie

International Food and Agribusiness Management Review, 2015, vol. 18, issue 01, 22

Abstract: Pork consumption accounts for more than 60% of total meat consumption in China. China’s rapid economic growth, expanding middle class and continuous urbanization is increasing the demand for pork and importance in stabilizing China's pork market. This also creates an opportunity for foreign pork producers to export more pork to China. How can this be done? Foreign direct investment is one solution when trade barriers exist. This case study explores the reasons why China's Shuanghui International acquired the U.S. based, Smithfield Foods. Analysis shows that the success of the two companies’ merger depends upon the establishment of an efficient transnational pork supply chain. This case study can be used for Bachelor of Science and Master of Science students in international economics, agribusiness and agricultural marketing courses. It will also be helpful to business managers who want to export more agricultural goods to China.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Demand and Price Analysis; Financial Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; International Development; International Relations/Trade; Livestock Production/Industries; Productivity Analysis; Risk and Uncertainty; Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:197782

DOI: 10.22004/ag.econ.197782

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