Brazilian food processor Brasil Foods, the world's leading poultry exporter and a ready-meal manufacturer, and Dah Chong Hong Ltd, a subsidiary of Hong Kong-listed Dah Chong Hong Holdings Ltd, have signed a preliminary letter of intent to set up a joint venture with effort to enter the Chinese market, according to sources, reports China Knowledge.

Brasil Foods said in a statement that the JV will help the company distribute its products in the Chinese market, establish local food processing operations and develop its Sadia brand in China.

Dah Chong Hong Holdings is one of the largest distributors of food and other consumer goods in China. It has infrastructure for the distribution of frozen food.