January 28, 2008

China to supply 3,900 pigs a day to Hong Kong on festival's demand

Beijing pledged to supply 3,900 live pigs per day to Hong Kong to meet Lunar New Year's demand and stabilize prices.

Wang Xinpei, Ministry of Commerce spokesman, said that China is aware of the importance of pork supplies for Hong Kong.

Three main pig suppliers, Ng Fung Hong, Guangnan Hong and the Agriculture Special Zone Development Association, have been called upon by the ministry to ensure sufficient supply during the festival.

China will also announce an additional list of 31 authorised pig farms to up supply to Hong Kong.

Hong Kong struggled through a scant pork supply in the previous days as wholesale prices shot up to 70 percent in the last 10 days, from HKD1,400 (US$179) per 100 catties to a record high of HKD2,400 (US$307).

Buyers said that the price hike was due to a drop in the number of live pigs shipped to Hong Kong, although the government insisted on stable supply.

Meanwhile, Wang said that pork prices in China have been escalating mainly on higher operating costs.

The Chinese government temporarily intervened to control market prices of some daily staples such as grain and meat. These interventions include requiring major producers to obtain government approval before raising their prices.