(CN-HKG) Hong Kong Pig Farming

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Thursday, April 6, 2006

South China Morning Post

http://hongkong.scmp.com/hknews/ZZZCQYJ1DLE.html

 

Stymied pig farmers look to mainland

by ANITA LAM

 

Pig farmer Wong Buk-hung will be moving his operations to the

mainland from Lau Fau Shan, as the industry declines. Picture by

Dominic Nahr

 

Pig farmers are looking north for a way out of Hong Kong's dying pig-

rearing industry, but fear tumbling profits unless they can keep

their supply chain to the city.

While the mainland offers much lower costs and more space, returns

are also a lot lower, the farmers say.

 

Their concerns were expressed a day after the government announced a

plan to offer farmers $921 million to phase out pig farming in Hong

Kong, following an increase in infectious disease among their

livestock.

 

Simon Cheng Ka-shing, of the Hong Kong Pig Development Association,

said rent and labour costs for pig farmers on the mainland were about

a tenth of what they were in Hong Kong. But this was not enough to

offset the low sale price of pigs.

 

" Even with the cost-cutting measures, I estimate the profit to be

about 30 per cent lower, " he said.

 

Agricultural sector legislator Wong Yung-kan demanded that the

government maintain the farmers' supply chain in Hong Kong, even

though the pigs would be reared on the mainland.

 

" All local farmers are rearing pigs under licences issued by the

Agriculture, Fisheries and Conservation Department. I hope they can

continue to operate under that licence even if their farms have moved

north, so their pigs can be sold in Hong Kong, " he said. Mr Wong said

meetings with relevant authorities, arranged by Beijing's liaison

office in Hong Kong, were under way.

 

Mr Cheng said about 60 farmers - about a fifth of the total in Hong

Kong - were planning to move operations to the mainland with ex

gratia payments ranging from $450,000 to $25.45 million each. There

are 265 pig farms in Hong Kong.

 

Mr Cheng, who will receive compensation of $18 million for his three

farms in San Tin, has found a site for his new farm in Shaoguan large

enough to accommodate 20,000 pigs, a third more than the number on

his three sites combined.

 

He said he would invest $10 million in his new farm.