The Competition Policy Advisory Group says the introduction of the voluntary licence surrender scheme for pig farmers will not have a significant long-term impact on the local pork market.

In its 2005-2006 annual report published today, the group said there may be concern about insufficient competition and increasing dominance of Ng Fung Hong in the pork market because of a gradual scaling down of local pig farming.

However, it said competition in the market is expected to be maintained as there will still be a wide range of close substitutes to fresh pork. Among them, chilled pork from the Mainland is widely regarded as a keen 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 said the importation of chilled pork from the Mainland should be a positive development for the local market because it will enhance the diversity of sources of meat supply and provide consumers with more choice.

For report details click here.