October 24, 2007

Hong Kong approves third importer for pork supplies

Hong Kong's government has approved a third company for the import of live pigs from the mainland to increase the supply of fresh pork to the territory.

The mainland's Ministry of Commerce told Hong Kong's The Standard that the Hong Kong Agriculture Special Zone Development Association had beaten seven other firms in applying for permission to import live pigs into the SAR.

It said the association was selected on the basis of its capital and financial status, communication channels, networking and creditability.

Secretary for Food and Health York Chow Yat-ngok welcomed the decision, saying the addition would help ensure stable pork prices and supplies.  However, Chow said the government is not planning any further expansion of the market.

Choi Chi-wai, chairman of the Hong Kong Agriculture Special Zone Development Association, said the move would spawn the investment of about HK$50 million (US$6.45 million) on hog farms in the mainland.

The firm would supply about 1,000 pigs to Hong Kong daily and the amount will be increased later. Choi expected the first batch of pigs to reach Hong Kong by March next year.

According to Choi, about 20 local farmers are interested in developing hog farms in the mainland and some of them, he said, have already set up farms across the border.

Ng Fung Hong was main supplier of live pigs from the mainland to Hong Kong until the central government appointed Guangnan Hong as the second wholesaler in July this year Consumers saw sharp increases in pork prices this year and questions arose on whether Hong Kong should open up the market to allow more importers.