Chinese chain signs US$1.2B deal with Malaysian tropical fruit supplier
The largest retailer in northeast China has signed a MYR4 billion (US$1.2 billion) purchasing contract to source bananas and other tropical fruits from Malaysia-based business AgroFresh Holdings Berhad, website Btimes.com.my reported. 
The contract with Dashang Group lasts for 10 years with an annual average trade value of MYR400 million (US$123 million) worth of Cavana brand Cavendish bananas.
AgroFresh executive chairman Datuk Aric Ng said the strategic deal would help local growers gain and develop market access for their produce in China, the story reported.
"Under the partnership, our subsidiaries will play their respective roles from producing tissue cultured seedlings to the final stage of production, to supply bananas and other tropical fruits to Dashang," Ng was quoted as saying.
AgroFresh is reportedly expanding its production to reach 9,500ha due to two new plantations in Thailand and Indonesia, building from its current 500ha of farms in the Philippines.
The story reported AgroFresh had also signed four off-take agreements with companies in Indonesia, Thailand, the Philippines and Malaysia.
Ng told the website he also planned to expand the company's scope to include pineapples.
The Dashang Group has a market capitalization of CNY7.5 billion (US$1.2 billion).
Photo: Wikimedia Commons, Yoshi Canopus
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