Yum Brands China Locks in Chicken Price for 3 Years

Yum Brands China on Wednesday signed a deal with 3 large Chinese chicken suppliers over the following 3 years to fend off spot market fluctuations. DaChan Food (Asia) Ltd (HKG: 3999), Fujian Sunner Development Co, and Shandong Xinchang Group are supposed to supply 280,000 metric tons of chicken worth more than ¥5 billion to Yum Brands' Chinese restaurants, including KFC and Pizza Hut stores. Yum currently has dealings with some 30 chicken suppliers on the mainland.

$1 = ¥6.8