Ministry of Commerce spokesman Wang Xinpei said that the government had issued effective policy arrangements to ensure a stablilty of supplies under the Close Economic Partnership Arrangement (CEPA), despite export restrictions to other areas.

He said that the mainland's wheat supply to the two SARs this year was generally the same as last year at an average of 269 tons per day for Hong Kong and 13 tons for Macao. The recent volatile supply of live pigs to Hong Kong, attributing it to sharp price hikes for pork on the mainland, was due to the increased costs of pig farming.

The ministry had adopted a series of reforms to resolve the problem, including more agencies exporting live pigs to Hong Kong, exporting rights for mainland pig farms, and a reform of the pig export quota system.

The mainland had supplied more than 3,900 live pigs per day on average, meeting basic market demand in Hong Kong. However, live pig prices were still rising and the situation remained serious as the traditional Spring Festival approached. The ministry said it would soon publish a list of farms eligible to export live pigs independently.

Xinpei said officials had also asked export agencies and companies to try to ensure the live cattle supply to Hong Kong as demand was expected to increase in the run-up to the Chinese New Year, which falls on 7 February 2008.