Press Releases
FHB welcomes study report on live pig pricing by Consumer Council
The Government welcomed the release of the study report on live pig pricing by
the Consumer Council, a spokesman for the Food and Health Bureau said today
(August 7).
The Consumer Council's study did not find any direct evidence of restrictive
practices or abuse of market power that hindered the competitive environment of
the live pig trade. The report also found improved information transparency in
the operation of live pig auction market. However, the report noted that a few
live pig buyers with a small market share were found to have involved in
aggressive bidding. Such instances of aggressive bidding inevitably caused
maximum auction prices to deviate from the average auction price in the
wholesale market.
The spokesman said since mid-January this year, the Food and Health Bureau had
adopted measures to further enhance market information flow and ensure a stable
supply.
These measures included –
1) keeping close liaison with the Ministry of Commerce who would make suitable
arrangements to maintain a stable supply of live pigs to Hong Kong; and
2) Enhancing market transparency by making public the quantity of live pigs to
be supplied to Hong Kong in the following day, as well as the number of live
pigs arriving at slaughterhouses and the auction prices on a daily basis. This
would enable live pig buyers, retailers and members of the public to have better
market information about the supply of live pigs, which in turn could help
stabilise the auction prices of live pigs.
"These measures help raise market transparency and stabilise the price of live
pigs. Since the implementation of these measures, the supply and price of live
pig have been steady. No unusual fluctuation in auction prices of live pigs has
been detected so far," the spokesman added.
The Consumer Council proposed in its report to establish a complaints handling
scheme and put in place "firewall" measures to ensure fair market competition.
The spokesman said similar complaints mechanism had been put in place. Regular
meetings are held by the Food and Environmental Hygiene Department (FEHD) and
the slaughterhouses operators with the trade to gauge views and handle
complaints. The FEHD will study the report by the Consumer Council and consider
whether there is a need to further enhance the mechanism.
In addition, the spokesman noted that the existing operation contract of Sheung
Shui Slaughterhouse would expire by July 31, 2009. Earlier, the FEHD had
consulted the trade and the Panel on Food Safety and Environmental Hygiene of
the Legislative Council on the future operation and management of the
slaughterhouse. The department is now drafting the tender document of the new
contract and plans to conduct tender exercise later this year.
"We will include clauses in the new operation contract to enhance regulation of
the operation of the slaughterhouse, including requiring the operator to treat
all users equally in the distribution of laans and parking spaces. The admission
of live food animals and allocation of lairage spaces have to be done on a
first-come-first-served basis. Moreover, we will enhance regulation in the areas
of fees, information provision and disclosure, as well as the system of
sanctions and incentives," he said.
Ends/Thursday, August 7, 2008
Issued at HKT 19:41
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