August 17, 2007

Hong Kong's closures of pig farms raises concerns

Even as China struggles to stablise pork prices in the face of a pork shortage, Hong Kong is encouraging 90 percent of the city's hog farms to close citing health risks posed by the farms.

This meant that Hong Kong would come to rely on the Mainland more heavily for its pork supply. Currently 80 percent of the territory's hog supplies come from China. Hong Kong imports 4,500 hogs from China daily.

Pork prices in July are said to have risen more than 80 percent on-year in China's pork market.

Hong Kong's live hog supply recently fell 35 percent below normal in July as disease outbreaks in China hindered supplies.

Economists say Hong Kong should keep more pig farms open to secure supplies in times of crisis. Although switching from China to other countries for pork supplies would be workable for Hong Kong, it would be more expensive.