In light of the pork poison incident induced by Clenbuterol Hydrochloride, Guangzhou City has suspended purchasing hogs from Hunan. Guangzhou government plans to purchase hogs within Guangdong in the future to meet more than 50% of the demand, for it is easier to control pork quality within the province. BOABC considers that this policy has little impact on Hunan’s hog shipment to Guangdong.
Guangdong ships in more than 12 million heads of hogs a year from other provinces, including 5 million heads from Hunan. Even if large cities in Guangdong cut hog inshipment from Hunan, Guangdong’s total demand for Hunan hogs is expected to be stable.
Guangdong’s hog inshipment from Hunan may be partly replaced by pork inshipment, conducive to the development of hog slaughter in Hunan. Considering consumers’ preference for fresh pork, Guangdong’s inshipment of frozen pork is estimated to be limited.
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