May 18, 2012

 

China's fresh pork remains pricey

 

 

Fresh pork prices in China's local shops has dropped far more slowly than the wholesale price of live pigs, making the gap between the two prices wider by more than a quarter in 15 months, according to a consumer watchdog.

 

A Consumer Council study found the wholesale price of pigs in March was 18% lower than its peak of HKD16.80 (US$2.16) per catty in July. But the average retail price fell just 4% from its peak of HKD42.70 (US$5.5) in October, to HKD41 (US$5.28) in March.

 

The council urged retailers to cut prices and consumers to shop around. But traders said a drop in supply was behind the discrepancy.

 

"Most people are not aware of the wholesale prices," vice-chairman of the council's publicity and community relations committee, Philip Leung Kwong-hon, said. "[We] can't do much as Hong Kong is a free economy. But if the shops can match the prices better, I hope they will do it."

 

Council chief executive Connie Lau Yin-hing said: "Consumers are usually the ones who suffer in these price fluctuations."

 

The study - based on Agriculture, Fisheries and Conservation Department data - also showed the beef retail price going up more slowly than the cattle wholesale price. In January last year, the live cattle wholesale price was HKD23.70 (US$3.05) per catty. It rose by 19% to HKD28.20 (US$3.63) in March. The retail price rose 16% from HKD60.90 (US$7.84) to HKD70.60 (US$9.09).

 

Hui Wai-kin of the Pork Traders General Association said the fall in wholesale prices was due to less good-quality pork being imported in the past few months, and attributed the increase in retail price to a drop in supply. "We seldom sell pork of lower quality at the butcher shops, so there is actually a drop in supply," he said, adding that the retail price had fallen to HKD36 (US$4.63) per catty recently.

 

Pork prices have risen worldwide in recent years. But analysts polled by Bloomberg this month said a surge in production is likely to see prices fall by 10% by the end of this year.

 

The Consumer Council received 26 complaints about sales of fresh pork and beef last year, up from 16 in 2010. Between January and last month, it received 15 complaints. Most of last year's complaints were related to unscrupulous sales tactics.

 

Meanwhile, of 18 multiple-socket outlet adaptors tested by the council, only one passed all aspects on safety. The Electrical and Mechanical Services Department warned against using one; 11 were removed from sale.