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China Lifts Ban on Pork Plants

Action could have significant impact on hog market.

China announced Tuesday that it is lifting its bans on pork from six pork processing plants, including five plants that are owned by Smithfield Foods Inc., according to Christine McCracken, a food stocks analyst at Cleveland Research Co. in El Segundo, Cal.

China offers significant export potential for U.S. pork as the country consumes five times as much pork as the U.S., while its pork production sector has liquidated substantially, its food inflation has reached record-high levels and it needs to increase pork supplies for the Chinese New Year and 2008 Olympics. McCracken says an acceleration in pork sales to China could help alleviate current record-large pork supplies in the U.S. and translate into higher pork and, thus, hog prices.

Source: Feedstuffs

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