Securities referred to: Sukahan Stock Code:831835




Hog Industry Hopeful China Will Approve Feed Additive

Time:2011-09-27 Article

Canada’s hog industry is hopeful that China will soon approve Paylean®, a hog feed additive (veterinary drug name, ractopamine) that increases feed efficiency. The product has approval in many countries including the U.S. and Canada. However, according to the Canadian Pork Council (CPC), the national organization representing hog producers, it could be later this year before China approves the product.
   As a result, Canadian pork exports to China are down sharply in the first two months of 2008 compared to a year earlier. The CPC says that China has a zero-tolerance policy and that several North American packing plants, including two Canadian plants, have been delisted for exporting pork to China with traces of Paylean®.
   Despite the decline in sales to China, Canadian exports of pork to Hong Kong have recently increased and Canadian pork producers tend to view China and Hong Kong as a single market. Jacques Pomerleau, Executive Director of Canada Pork International, the export arm of the pork industry, told the media that if not for the Paylean® issue, Canada would be exporting a lot more pork to China. He cited low pork supplies and rising middle class incomes in China as promising factors for future Canadian pork export sales once the additive issue is settled