Source:  Lisa M. Keefe, MEATINGPLACE, 6/9/11

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Smithfield Foods Inc. has signed a memorandum of understanding with the Dandong Port Group that formalizes the companies’ intent to explore business opportunities in northern China, according to a news release from Virginia Gov. Bob McDonnell’s office.

McDonnell noted that the agreement was reached during his recent trade and economic development mission to Asia.

Dandong owns and operates major ports and infrastructure in northern China. Its access to the region’s growing economic opportunities could benefit Smithfield’s goal of exporting more pork to China, which is the world’s largest pork market.

“The two companies will examine ways to grow the business alliance through exchange of information and market studies aimed at maximizing the assets of both companies,” the release said.

During the first quarter of 2011, China imported more than $42 million worth of U.S. pork.

"By making increased agricultural exports a priority of his economic development agenda, Gov. McDonnell is expanding opportunities for the state's top industry," said Joseph W. Luter IV, Executive Vice President of Smithfield Foods.