Beijing vows to break beef monopoly

Beijing authorities have promised to study proposals to reform the live cattle supply to Hong Kong - including abolishing the Ng Fung Hong monopoly - according to a lawmaker who met mainland officials last week.

Agriculture sector legislator Steven Ho Chun-yin said the ministry would agree to breaking the monopoly - blamed by Hong Kong traders for pushing up prices - once there was consensus between the Hong Kong government and industry players.

Hong Kong-listed Ng Fung Hong is the only export agent endorsed by the Ministry of Commerce and the government is under pressure from legislators to open up the market.

Ho, who was in a delegation of agricultural bodies that visited ministries in Beijing last week, said the commerce ministry would also consider simplifying procedures in the mainland-Hong Kong supply chain. If there were more suppliers, competition could help lower the price of beef, he said.

Unlike live cattle sold on the mainland, those supplied to Hong Kong must be sourced from registered farms and comply with more stringent requirements on breeding, inspection and quarantine.

National People's Congress deputy Brave Chan Yung said the standards and costs for quarantine and checking Hong Kong beef were much higher than those on the mainland.

While the standards could not be lowered, "we hope that at least the price can be more reasonable, and will not fluctuate too much", Chan said.