JD.com Commits To Purchasing More Than $2 Bln Of U.S. Goods Over Next 3-yrs

(RTTNews) - JD.com, (JD) said that it entered 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.

JD said it 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.