More local pig farmers will be encouraged to do business on the mainland and the city's live pig market will be opened to more importers, Secretary for Food and Health York Chow announced on Friday.

Local pork traders welcomed the move and expect a fall in the wholesale price for live pigs.

Chow's announcement came after discussions with the Ministry of Commerce amid concern that Hong Kong's sole live pig importer Ng Fung Hong had raised the wholesale price by more than 10 percent to HK$1,300 per 50 kilograms.

He said the Guangnan Hong, a supplier of live and frozen poultry to the Hong Kong Special Administrative Region (SAR), and a third importer owned by Hong Kong residents would be allowed to join the live pig market.

"We are ensuring that there is fair competition in the market," Chow said.

He added that local pig farmers were being encouraged to open farms on the mainland, provided that they had fulfilled mainland safety requirements and had at least 5,000 pigs.

But he said the price of pork would not go down within a short period of time.

Pork trader Man Cheuk-pui expected the wholesale price to fall by HK$100 per 50 kilograms as a result of the new measure.

Agricultural sector legislator Wong Yung-kan said allowing Hong Kong people to establish pig farms on the mainland could help stabilize prices.

Six Hong Kong-owned pig farms opened on the mainland last year, in Meizhou, Shaoguan, Yangjiang and Zhanjiang, all in South China's Guangdong Province.

Hong Kong Agriculture Special Zone Development Association Vice-Chairman Choi Chi-wai said the first batch of live pigs raised at these six farms could be exported to Hong Kong by the end of the year.

Pig farmer Leung Chik said operating farms on the mainland was profitable as a result of cheaper land and labor costs. He said a label should be attached to pigs raised on Hong Kong-owned farms certifying that they were safe to eat.

Tam said members of the association may establish a joint company, and apply to be the third importer of live pigs.

(China Daily July 21, 2007)