Editor’s note: Since receiving information yesterday on this project from JD.com, Coles has asked for adjustments to better reflect the trade circumstances – added below.
ONE of China’s enormous online direct-to-consumer food companies has signed a beef supply agreement with large Australian export processors Bindaree Food Group and Stanbroke.
JD.com, one of the largest privately-owned companies in China, is regarded as the country’s largest e-commerce online home-delivery retailer, as well as running a large ‘bricks and mortar’ supermarket chain called JD Super.
The companies have signed a major procurement agreement said to be worth A$105 million with Australian beef suppliers.
Bindaree has supplied product to JD.com since 2019, but this is the entry point for Stanbroke, Beef Central was told. Despite JD’s statement, Coles has since denied having a formal supply contract in place with JD (see references below).
Evidently the size and the scope of the contract was so large that it required multiple sources of supply, sources close to the deal said.
This partnership marks a significant step in JD Super’s effort to source high-quality global products directly from producers, provide Chinese consumers with premium, cost-effective imported beef, and open new opportunities for international partners, the company said in a statement.
The deal encompasses a diverse selection of premium beef products including grassfed, grainfed, Angus and Wagyu beef.
Bindaree Beef based at Inverell in northern NSW, is a large scale export and domestic processor of both grain and grassfed beef. The company is expanding its Myola feedlot near Moree from 20,000 to 35,000 head capacity, and handles more than 5000 cattle each week.
Stanbroke is a large, fully-integrated beef supply chain, managing 1.2 million hectares of grazing land, a feedlot and self-contained processing facility. The company produces a wide range of beef including Wagyu, Angus, and both grassfed and grainfed beef.
Significantly, some product entering the program will be exported in retail-ready vacuum-packed cut form, rather than traditional bulk carton meat. Procut will be exported in both chilled and frozen form.
Coles clarifies position
Another Australian beef supplier named by JD.com in the statement as being involved in the new agreement was Coles.
Coles contacted Beef Central, asking to correct some of the messaging contained in the original version of this article.
A Coles Group spokesperson said the company had had a ‘collaborative arrangement’ with JD.com and its supplier for a number of years.
“Working with key partners like JD.com and their supplier is an essential part of Coles’ well-established integrated sourcing model,” the company said.
The collaborations announced this week enabled Australian beef producers to address key challenges in the Chinese market, such as low brand recognition and high retail prices caused by traditional multi-layer distribution, JD said in its statement.
“By partnering directly with JD Super, these suppliers gain access to Chinese consumers more easily, cut out middlemen to offer more competitive prices, and strengthen their brand awareness in China,” the company said.
JD Super, which is the only e-commerce platform sourcing beef directly from Australia, leverages JD’s vast customer base of 600 million active users, and advanced digital infrastructure to boost partners’ visibility and sales. Direct online sales have reached a point in China where citizens in large metropolitan cities in China can receive their product just 30 minutes after an online order is placed, Beef Central was told.
“Through targeted traffic support, effective consumer feedback tools, and JD’s intelligent supply chain, suppliers gain valuable insights into consumer preferences, allowing them to refine their products and foster greater brand loyalty and repeat business,” JD said.
“This partnership strengthens JD Super’s supply chain, ensuring a stable and diverse range of high-quality Australian beef for our customers,” a JD Super fresh food division spokesperson said.
“We are dedicated to working with top global suppliers to deliver exceptional products at great value, while helping our partners grow and increase brand recognition.”
JD Super said it aimed to deepen its relationships with leading global producers, create value for partners, and bring superior quality products to consumers around the world.