June 5, 2008

China's earthquake casts minor impact on Hong Kong's pork supply

The recent earthquake in China's Sichuan province will bear a minimal impact on Hong Kong's pork supply as the country imports less from the province, Acting Financial Secretary, Carrie Lam, said.

Lam said that although Sichuan is the largest producer of pork in China, most of Hong Kong's supply comes from Guangdong, Jiangxi and Hunan, with Guangdong accounting for half of the supply.

On frozen pork, the monthly supply from Sichuan is estimated to cut only 3 percent of Hong Kong's supply.

Chinese authorities previously assured that to make up for a shortfall in Sichuan, shipments from other provinces will be increased.

Meanwhile, Lam said that the impact of the earthquake on food prices remains to be seen.

Lam confirmed that the persistent high price of crude oil and other commodities in world markets, the weak US dollar and the sustained strength of the local economy will continue to exert inflationary pressure for some time.