# Beyond Meat inks agreement with China to produce its plant-based proteins



## daveomak.fs (Sep 9, 2020)

*Beyond Meat inks agreement with food safety challenged China to produce its plant-based proteins*

By Dan Flynn on September 9, 2020

In the past decade, Beyond Meat’s plant-based protein offerings have become ubiquitous in the marketplace.   It’s gone far with its claim that its meat substitute   is “the future of food.”
Now, however, Los Angeles-based Beyond Meat has to persuade finicky American consumers that the future includes a detour through the People’s Republic of China, a country with one of the most atrocious food safety records in the world.  Food safety scandals in China include a seemingly endless list of foods and poisons..   Some examples include poisonous Jinhua ham, counterfeit baby formula, adulterated pickled vegetables, counterfeit alcoholic drinks, poisonous mushrooms, sewage in tofu manufacturing, fake eggs, expired meats, gutter oil, pesticide residues, and sodium formaldehyde Sulfoxylate, just to name a few.
All that history aside, Beyond Meat has signed an agreement with  Jiaxing Economic & Technological Development Zone “to design and develop manufacturing facilities in the JXEDZ, including a state-of-the-art production facility to manufacture plant-based meat products including beef, pork, and chicken under the Beyond Meat brand in China.”
Jiaxing is a northern, water-connected  Chinese city that some remember for when at least thousands of hog carcasses were found floating in the local Huangpu River.  The JXEDZ, according to Beyond Meat, is a new “historic and commercially important development zone with ready access to Shanghai.”
 “Beyond Meat is building the perfect road to long term success in China, said Micky Pant, senior advisor to Beyond Meat,  “It has the confidence to set up dedicated, cutting edge production capacity via a wholly-owned subsidiary, located on the mainland close to Shanghai. The JXEDZ is a visionary and proactive partner with an excellent record in supporting the food industry.”
Supply chains not previously considered risky because of their Chinese links are now under serious review because of the COVID-19 pandemic.  Going the other way, however,  Beyond Meat, Inc. will be the first multinational company focused solely on plant-based meat production to bring its own major production facility into China.
Food production in China has come at a price because of the country’s poor food safety record, which often puts children at risk.  Many American consumers ceased buying food produced in China more than a decade ago when milk powder was dosed with melamine, sending thousands of children to hospitals and killing several.
Beyond Meat CEO Ethan Brown is apparently not among them.
China is one of the world’s largest markets for animal-based meat products, and potentially for plant-based meat,” Brown said.  “We are delighted and confident that after several months of productive and collaborative discussions, we will partner with the JXEDZ to develop two production facilities, including one of the world’s largest and technologically advanced plant-based meat factories. We are very impressed by the capabilities and vision of the JXEDZ and they are the ideal partner for us in this vitally important country and market.” 
Candy Chan, General Manager for Beyond Meat in China added, “With its expertise in the food industry, proximity to Shanghai, and excellent logistics and people capabilities, the JXEDZ will be the perfect partner and location for our ambitious plans for the China market.”
The general director of the Jiaxing Economic & Technological Development Zone is happy with the deal.
“We are very happy to welcome Beyond Meat to our Economic Development Zone and to China. It is our vision to support high-quality investors in starting their ventures in China, and we are aligned with the vision of Beyond Meat to bring new, high technology food products that are nutritious and environmentally friendly to the Chinese market,” he said. ” We look forward to a long relationship and mutually beneficial partnership with this dynamic new-age company.”
Trial production is expected to commence within months with full-scale production in early 2021. China is expected to be one of the most important markets in the world for Beyond Meat, as a production and R&D center, and as a major market in the years to come.
It remains to be seen how American consumers will respond.   When USDA permitted China to process chickens raised and slaughtered in the U.S., Canada, and Chile, thousands of American consumers protested because of China’s dismal reputation for food safety.
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## bbqbrett (Sep 9, 2020)

I haven't had the urge to try the plant based stuff.  If I do, it sure won't be a Beyond Meat product.


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## TNJAKE (Sep 9, 2020)

Like I needed another reason to avoid that crap lol


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## JC in GB (Sep 9, 2020)

China is leaving the USA behind in terms of innovation and market functionality.  Beyond Meat stock is selling just under $140 per share today.  Livestock production has very high food and water inputs.  I can see that this may be the way of the future but I am also concerned that China has very lax enforcement of environmental policies.

I may have to look into buying some stock shares and see what happens.  The one Chinese stock I own has been tripled in price since I bought it.

JC


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## spudthegreater (Sep 9, 2020)

daveomak.fs said:


> View attachment 462532
> 
> *Beyond Meat inks agreement with food safety challenged China to produce its plant-based proteins*
> 
> ...


Soylent Red is People!!!!   I think I've seen this movie before.


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## bbqbrett (Sep 9, 2020)

JC in GB said:


> China is leaving the USA behind in terms of innovation and market functionality.  Beyond Meat stock is selling just under $140 per share today.  Livestock production has very high food and water inputs.  I can see that this may be the way of the future but I am also concerned that China has very lax enforcement of environmental policies.
> 
> I may have to look into buying some stock shares and see what happens.  The one Chinese stock I own has been tripled in price since I bought it.
> 
> JC



This really has nothing to do with Chinese innovation etc.  It is simply yet another American company taking advantage of cheap Chinese labor to make a higher profit.


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## SmokinAl (Sep 10, 2020)

I eat a lot of Morningstar veggie burgers & some of their other products. Was going to give Beyond meat a try, but the price is outrageous! You could buy Prime meat for the same price! Cheap Chinese labor & lax safety laws could easily bring the price down, so more people would buy it.
Al


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## JC in GB (Sep 10, 2020)

bbqbrett said:


> This really has nothing to do with Chinese innovation etc.  It is simply yet another American company taking advantage of cheap Chinese labor to make a higher profit.



This particular product may not have to do with Chinese innovation as you stated, however, the Chinese economy, on a whole, is on pace to outperform the US economy.  Part of this trend is directly linked to Chinese product and market innovations.  If this product gains a significant marker share, look for China to capture the technology and market their own line of products.


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## bbqbrett (Sep 10, 2020)

JC in GB said:


> This particular product may not have to do with Chinese innovation as you stated, however, the Chinese economy, on a whole, is on pace to outperform the US economy.  Part of this trend is directly linked to Chinese product and market innovations.  If this product gains a significant marker share, look for China to capture the technology and market their own line of products.



Yeah, the Chinese economy is doing great, however it is not do to Chinese innovation.  The Chinese actually have a company, Zhenmeat that is already formed and will be looking to compete.  If by Chinese innovation you mean having the Chinese government and Chinese government owned companies acquiring most of the technologies, designs and other proprietary information that they have from foreign companies you would be correct.  However true Chinese innovation is almost non-existent.


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## bbqbrett (Sep 10, 2020)

SmokinAl said:


> I eat a lot of Morningstar veggie burgers & some of their other products. Was going to give Beyond meat a try, but the price is outrageous! You could buy Prime meat for the same price! Cheap Chinese labor & lax safety laws could easily bring the price down, so more people would buy it.
> Al



Yeah, the prices on Beyond is very high.  Saw some in the grocery store and was shocked that it was more expensive than the beef I bought.  Just a guess but I wouldn't count on the prices coming down anytime soon, if at all.  At this point they are making a small profit but will probably go the way of most American companies that manufacture in China and keep prices high to continue to increase the profit margin for investors.


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## dr k (Sep 10, 2020)

I've tried pre packaged meatballs that are from Beyond Meat from Kroger's manager special meat area. I can't see paying $6 for a dozen unidentifyable flavored plant matter. I've had other plant based meat substitute burgers but .....screw it! I can't even back up to retype with this messed up site on my ph.


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## JC in GB (Sep 10, 2020)

bbqbrett said:


> Yeah, the Chinese economy is doing great, however it is not do to Chinese innovation.  The Chinese actually have a company, Zhenmeat that is already formed and will be looking to compete.  If by Chinese innovation you mean having the Chinese government and Chinese government owned companies acquiring most of the technologies, designs and other proprietary information that they have from foreign companies you would be correct.  However true Chinese innovation is almost non-existent.



China is listed as the #14 top innovation country in 2020.  China has been a leader in mobile payment solutions, AI, and renewable energy.

Your assertion that they made their rise on the backs of other country's innovations is quite valid.  It doesn't change the fact that they are nipping at our heels now in nearly every indicator and leading the US in some.  

China holds a mountain of US debt that puts them in an even stronger position.  Do not take this as putting up for China.  They have a repressive, single party government which I find distasteful.

If you want to make money in the next decade look to Chinese investments.  My $0.02....

JC


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