Beijing DQY Agriculture Technology, a Chinese egg producer, will co-operate with a unit of U.S. meat supplier Smithfield Foods Inc. on a bio-fuel joint venture, the Chinese company said in a statement yesterday.
The biogas project will produce 3.5 million cubic meters of methane annually and have a power generating capacity of 1 megawatt, according to a statement on DQY’s website, which did not give an investment amount.
The U.S. and China plan to sign a five-year accord to cooperate on agriculture trade, production and food security, expanding ties as population and income growth in Asia boost demand for everything from pork to cotton.
The agreement with Smithfield, Virginia-based Smithfield Foods was signed on Feb. 16 at a farm symposium in Des Moines, Iowa, which Chinese Vice President Xi Jinping attended, according to DQY’s statement.
DQY and Smithfield will invest $1.8 billion in the joint venture, China’s Xinhua news Agency reported yesterday. The project will require an insignificant investment on the part of Smithfield, Keira Lombardo, a spokeswoman for the company, said in an e-mail.