The Study of JBS Market Entry to China

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With the fast development of Chinese economy and the great improvement of living standard,peoples demands for high level meat as beef are growing.The total consumption of beef in China is increasing at a rate of 4% annually.China is the third largest beef cattle rearing nation all around the world and in 2010 the total output of beef was up to 6.53 million MT,up by 2.7%,which still couldnt meet the increasing demand.In recent years,beef price was rising,so beef consumption market is promising and beneficial.  The proportion of free-range cattle in China is decreasing sharply,while scale raising trend is obvious.In addition,slaughter processing industry faces a great potential of integration.In general,beef industry in China is standing at transition period from development stage to growth stage;there are both opportunities and challenges.My purpose of this research is to analyze the beef industry in China and to develop a strategic suggestion for JBS to expand its business and to catch the China market.Investing in China is the ultimate goal of many companies around the world;since twenty-five years ago government regulations and market structure have opened up China to foreign companies to market entry;another important reason,is the cost reduction,by its given cheap labor and low cost of raw material.Also for this topic Im trying to identify problems besides its internal also external factors such as diseases,regulations on the industry that are implications JBS in trading beef in China.  Hopefully this study will contribute in helping other meat producers like JBS to understand China Beef market better and to look new opportunities trough market entry,finding the right country for their international expansion.My approach will intend to give some practical tips for big sizes companies to see China as their choice of market strategy and to develop more competitive advantages in the industry.
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