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Smithfield to boost exports to China

By Bloomberg News | China Daily | Updated: 2013-10-11 07:47

Increased demand

The purchase drew criticism from some US lawmakers who raised concerns that it may transfer food-safety issues from China to the US. The bid for Smithfield underscores the increased demand for meat, particularly pork, from China's expanding middle class.

About 40 percent of Smithfield's production is ractopamine- free, Pope said. "We have the ability to expand that," he said.

While Smithfield's exports to China have been mostly offal, parts shunned by US shoppers, the company will boost exports of higher-priced cuts of meat, Pope said.

"The merger's objective is to go beyond the offal into the muscle meat," he said, adding that the company has been selling prime cuts to Shuanghui for nearly a year.

Wan also said the company had no specific plans for a stock exchange listing. Shuanghui International has a listed unit in Shenzhen called Henan Shuanghui Investment & Development Co.

"There's tremendous work" to be done after the merger, Wan said on Thursday. "An IPO is a good thing and we hope to get listed, but it needs to wait until the opportunity is right."

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