According to the Competition Policy Advisory Group, the voluntary licence surrender scheme for pig farmers in Hong Kong will not have a significant long-term effect on the local pig market.
The Competition Policy Advisory Group believes that, due to the slow decline in the number of local pig farmers, there may be concern over insufficient competition as well as increased dominance of Ng Fung Hong.
There is, however, still a wide range of substitutes to fresh pork, and so, the competition in the market may be maintained. Chilled pork from the Mainland is widely regarded as a major competitor of fresh pork. The Health, Welfare & Food Bureau will discuss with Mainland authorities the feasibility of opening up the live pig market.
The Group says that the importation of chilled pork from the Mainland should be seen as a positive development for the local pork industry as it offers greater diversity of meat supply sources and offers consumers a choice.