Partnership seeks to modernize logistics and reduce costs of beef exports to China
The Brazilian Association of Meat Exporting Industries (Abiec) has signed a memorandum of understanding with Chongqing Investment Consulting Co. Ltd (CQIC) to try to improve and modernize the logistics of beef exports from Brazil to China. The intention is to reduce costs by increasing efficiency in the storage and transportation of cargo.
The partnership aims to promote the construction of cold chain storage facilities for beef in Brazil, a need in the meatpacking sector, especially for small plants. Abiec and CQIC will select locations to build large-scale cold storage warehouses, processing and distribution centers, and temperature-controlled turnover facilities.
Roberto Perosa, president of Abiec, said that the organization will act as an intermediary with companies to choose locations for the eventual construction and installation of storage areas. CQIC, a state-owned company linked to the Chinese government, will be responsible for the investment and execution of the project. The objective will be to build and lease these warehouses.
“We will try to direct and make several small investments in smaller meat processing plants. This can improve the flow here and provide even more storage security, in case of any problem, such as a disease outbreak, the company has meat stored, it doesn't need to stop production,” said Perosa. The signing took place during Sial China, in Shanghai.
Zhou Wei Zhi, president of CQIC, pointed out that Brazil's cold chain logistics still has some “minor defects” that the partnership will seek to correct with the company's expertise in the field.
“We are closing the partnership to help companies improve the infrastructure of their cities and locations so that Brazilian beef can reach China fresher, faster and safer.”
“Brazil has problems with stocks, production is large, but there is still a lack of refrigerated warehouses, it still uses truck transport, which is slow, and there are no railways to carry out the transport,” he added.
CQIC has extensive experience in cold chain storage, logistics hubs, multimodal transport and industrial park planning. Last week, the representative of the municipal government of Chongqing, a city in southwestern China, had already signaled the need to make investments to improve export logistics in order to expand trade with Brazilian meatpacking plants.
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