JD.com Commits to Purchasing More Than $2 Billion of U.S. Goods Over Next Three Years
November 08 2017 - 3:00AM
JD.com, (NASDAQ:JD), China's largest retailer, today participated
in a signing ceremony held at the Great Hall of the People, with
the company entering agreements to purchase in excess of $1.2
billion of beef from The Montana Stock Growers Association (MSGA)
and pork from Smithfield Foods, Inc. over the next three years. The
agreements are part of an overall commitment by JD to purchase $2
billion of U.S. goods across a wide range of categories over three
years. U.S. Secretary of Commerce Wilbur Ross, Jr. and Chinese Vice
Premier Wang Yang were in attendance to witness the signing
ceremony.
Meat products are a fast-growing category for JD. In the first
half of 2017, volume from direct sales of meat on JD increased more
than 780 percent year-over-year, with imported meat accounting for
more than 30 percent of those sales. Online orders for fresh and
frozen meat come chiefly from first and second-tier cities, leaving
huge potential for growth in online sales from the rest of the
country.
“These groundbreaking agreements bring together two of America’s
most trusted and in-demand meat suppliers with China’s leading
e-commerce platform, to the benefit of both U.S. producers and
Chinese consumers,” said Richard Liu, JD.com Chairman and CEO, who
participated in the signing ceremony. “China’s shoppers will rest
assured knowing that they are able to purchase safe, high-quality
meat products imported from the U.S., with the fast delivery and
ironclad assurance of authenticity that they have come to expect
from JD. We look forward to expanding our long-term cooperation
with high-quality U.S. meat producers like Smithfield and
MSGA.”
JD will import Montana-sourced beef from Cross Four Ranch and
MSGA members to China for direct sale to the 258 million Chinese
consumers on its e-commerce platform. The procurement agreement is
for an initial three years, with a minimum commitment of $200
million in beef to be imported by JD from Cross Four Ranch and MSGA
members at fair market value during the term. It is estimated that
JD’s purchase of Cross Four Ranch and MSGA beef will increase
Montana beef export sales by as much as 40% in 2018.
“This is a landmark agreement to increase Montana agricultural
exports to the fastest growing overseas market for beef,” U.S.
Senator Steve Daines of Montana stated. “This is a win for
Montana’s hardworking ranchers.”
Beef is the fastest growing meat sector in China and the country
is the world’s fastest growing overseas market for beef, following
the resumption of American imports earlier this year.
China is the world’s largest producer, consumer and importer of
pork. According to official estimates, Chinese pork imports more
than doubled in 2016, reaching a substantial 1.6 million tons
shipped.
JD’s extensive cold chain logistics capabilities will ensure the
U.S. meat products arrive at customers’ doors safely and rapidly.
The beef and pork will be cold-chain transported from the United
States and stored in JD’s own warehouses in China. From there, JD
can deliver it to customers in more than 100 cities across the
country within 48 hours – and to many in as little as six hours.
With its complete cold chain solution, JD can monitor the
temperature and humidity of products from warehouse to delivery.
JD’s cold chain logistics network currently includes 12 cold chain
warehouses in China, enabling the delivery of fresh products to
customers in 300 cities.
About JD.com, Inc.
JD.com is both the largest e-commerce company in China
and the country’s largest retailer by revenue. The company strives
to offer consumers the best online shopping experience. Through its
user-friendly website, native mobile apps, and WeChat and Mobile QQ
entry points, JD offers consumers a superior shopping experience.
The company has the largest fulfillment infrastructure of any
e-commerce company in China. As of June 30,
2017, JD.com operated 7 fulfillment centers and 335
warehouses covering 2,691 counties and districts across China,
staffed by its own employees. JD.com is a member of the
NASDAQ100 and a Fortune Global 500 company.
About MSGA
The Montana Stock Growers Association (MSGA) is a non-profit
membership organization that has worked on behalf of Montana’s
cattle ranching families since 1884. The mission is to protect and
enhance Montana ranch families’ ability to grow and deliver safe,
healthy, environmentally wholesome beef to the world.
The association works to achieve its mission by representing the
members and the policy they set at the Montana Legislature and U.S.
Congress, with governmental agencies, in the media, and by
promoting the work of Montana’s family ranchers to the public.
About Cross Four Ranch
Cross Four Ranch is a privately held company in Miles City, MT.
They've produced high quality beef with care and honor for
generations.
Contacts:
Media Josh Gartner +86 (10) 8911-6155 (China) +1 (718) 928-4345
(US) Press@JD.com
Investor Relations Ruiyu Li +86 (10) 8912-6805 IR@JD.com
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