Hog slaughterhouses are generally not involved in pork retailing, except running a few chain stores that sell expensive, fresh-preserved pork to high-grade consumers. In light of the current dull pork sales, some slaughterhouses have started to engage in pork retailing.
Jiaxiang Food Co., Ltd., a slaughterhouse in Sichuan, has recently decided to develop pork direct sales, planning to increase its retail shops from 20 to 200 next year. Its entry into free markets is expected to benefit ordinary consumers. By cutting many distribution links, the company can both lower pork retail price and gain more profit itself.
Meat giants like Shuanghui and Yurun are not likely to follow suit, since they aim at high-grade meat consumers. The followers are likely to be small and medium slaughterhouses. As slaughterhouses’ direct sales function to squeeze illegal slaughter, they are expected to receive the government’s financial support.
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