Brasil Foods in China JV with Dah Chong Hong

HONG KONG Feb 14 (Reuters) - Brazilian food processor BRF-Brasil Foods SA said on Tuesday that it aims to make China its top revenue contributor as teams up with local partners to expand food distribution in one of the world's fastest growing markets.

Brasil Foods on Tuesday signed a joint venture agreement with Hong Kong-listed food and vehicles distributor Dah Chong Hong Holdings Ltd to expand distribution of chilled poultry, pork and beef products in China.

"Everybody wants to get into the Chinese market but the point is how to do that," said Brasil Foods Chief Executive Jose Antonio do Prado Fay. "In China, the best way is through a JV. We need local support for this kind of operation, and we think it is much smarter to find the right partner."

"China is growing in technology and is growing in business that needs labour in the cities, that means food has become very very important to China," Fay said, adding that China would eventually become the company's largest revenue contributor.

China now contributes about 10 percent of Brasil Foods revenue, while the Middle East represents 32 percent.

Dah Chong Hong Chief Executive Donald Yip said the new venture aimed sell more than 140,000 metric tonnes of food in the first year and 300,000 metric tonnes in five years.

Brasil Foods, which accounts for 20 percent of global poultry trade, generated about $13.5 billion in net sales in 2010, 40 percent from exports. (Reporting by Donny Kwok; Editing by Chris Lewis)