March 17, 2011

 

China shuts 16 pig farms over clenbuterol use

The authorities in the central Chinese province of Henan have closed 16 pig farms and seized 134 tonnes of pork products after an illegal additive clenbuterol was found in the animal feed, according to reports Wednesday (Mar 16). 

 

Some farms in the province, one of the country's major pig breeding areas, are reported to have fed pigs with clenbuterol, banned in the country, to promote production of lean meat, with the contaminated pork sold to the market and Henan Shineway Group Co Ltd, the country's top meat processor.

 

Shares of Shenzhen-listed Shineway Investment & Development Co Ltd under the group were suspended from being traded after state television on Tuesday reported that Jiyuan Shineway Food Co Ltd, a subsidiary company of Shineway Group, purchased pig fed containing clenbuterol.

 

Contaminated pork, according to the report, has been delivered to Shineway's subsidiaries throughout the province, as well as other meat processors.

 

The group ordered Jiyuan Shineway to halt operations and sent a deputy general manager to the company to impose corrective measures, according to the statement. The group also required all subsidiaries to strengthen management on purchases, production and sales to ensure product quality, it said.

 

Shares of Shineway Development fell Tuesday by the 10% daily limit to RMB77.94 (US$11.86). The suspension notice said trading of shares would resume after relevant facts were verified.

 

Shineway Group is headquartered in Henan's Luohe city with total assets of over RMB10 billion (US$1.52 billion). The group has factories in 12 provinces throughout China, producing cooked meat products such as sausage, and also has branches in Japan, Singapore, the Philippines and South Korea.

 

"The clenbuterol case would definitely affect consumers' confidence in purchasing meat products," said Li Changqing, general manager of Xinda Husbandry Company based in Henan. "Corrective measures should be introduced immediately to avoid consequences like those that damaged the dairy industry following the melamine scandal."

 

Clenbuterol has been banned as additive for pig feed since 2002 in China. Pig farmers and agents, however, have been able to sidestep loopholes in the administrative and regulatory system.

 

In a recent case in 2009, a court convicted 15 people in the southern city of Guangzhou after 70 people were poisoned by drug-contaminated meat.