CHANGGE and BEIJING, China,
Nov. 22, 2010
/PRNewswire-Asia-FirstCall/ -- Zhongpin Inc. ("Zhongpin", Nasdaq:
HOGS), a leading meat and food processing company in the People's Republic of China, today
commented on the outlook for hog and pork prices in China, given the recent measures issued by
China's State Council.
Mr. Xianfu Zhu, Chairman and
Chief Executive Officer of Zhongpin Inc., said, "We noticed that
China's State Council issued 16
measures to stabilize consumer prices and to ensure market
supplies. Excluding direct price intervention items, the 16
measures (listed below) focus on production development,
stabilization of supply, reduction of delivery costs,
standardization of market order, and enhancement of market
supervision."
Since early October 2010, hog
prices have maintained a slight rise and in that period have hit a
high for the year to date. Pork prices have generally also risen
during this fourth quarter of 2010.
Looking at the hog breeding sector, during the second half of
2010 the hog breeding industry in China is now profitable. Rising hog prices
further increases breeders' profits and encourages farmers to
replenish hog stocks. Currently in the hog market, supply and
demand are essentially in balance. Therefore, the trend for hog
prices is expected to be steady by the end of this year.
Mr. Zhu continued, "China's
pork market is market-oriented and heavily influenced by demand and
supply, so the Chinese government generally adjusts the market by
implementing policy using its frozen pork reserve instead of
imposing direct price intervention measures. As a pork reserve
participant, Zhongpin should benefit from changes in China's frozen pork reserve."
Background information
Below is related information released by the Xinhua news agency,
Beijing branch, on November 20, 2010.
"The State Council announced 16 measures to stabilize prices,
and government will issue temporary subsidies prices"
"The State Council has released a notice ordering local
governments and related ministerial agencies to take 16 measures to
stabilize commodity prices. The measures include increasing the
supply of agricultural products, reducing the logistics costs of
agricultural products, ensuring chemical-fertilizer supply,
coordinating the supply of coal, power, oil and natural gas,
offering price subsidies to low-income families, and developing a
mechanism to adjust social security payments for inflation.
"Local governments and departments must boost production and
ensure supply while checking irrational demand and punishing
illegal activities that push prices up.
"From December 1, road-toll
stations are forbidden to collect fees from vehicles transporting
fresh agricultural products, including vegetables, fruits, aquatic
products, meat, eggs, and milk. Potatoes, sweet potatoes, fresh
corn, and fresh peanuts are new items added to the
free-from-road-toll list, as the notice said.
"Hereby notified as follows:
"First, boost agricultural production.
"Second, stabilize supply of agricultural products.
"Third, reduce the delivery cost of agricultural products.
"Fourth, ensure supply of fertilizers.
"Fifth, coordinate coal, power, and oil and gas supplies.
"Sixth, disburse temporary price subsidies.
"Seventh, establish coordinated social-security mechanism linked
with price rises.
"Eighth, continue to implement the provisions for standardizing
charges.
"Ninth, actively and steadily push forward price reform.
"Tenth, standardize management and processing of agricultural
products.
"Eleventh, intensify supervision on futures and electronic
transaction market of agricultural products.
"Twelfth, improve laws and regulations for price
supervision.
"Thirteenth, strengthen price supervision and inspection and
anti-price monopoly law enforcement.
"Fourteenth, enhance price information release system.
"Fifteenth, hold provincial governors accountable for the prices
of 'rice bags' and make mayors responsible for 'vegetable
baskets.'
"Sixteenth, establish inter-ministerial joint conference system
for market price control."
About Zhongpin
Zhongpin Inc. is a meat and food processing company that
specializes in pork and pork products, vegetables, and fruits in
China. Its distribution network in
China covers 20 provinces plus
Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,285 retail
outlets. Zhongpin's export markets include the European Union,
Russia, Hong Kong, South
Africa, and Southeast Asia.
For more information about Zhongpin, please visit Zhongpin's
website at http://www.zpfood.com.
Safe harbor statement
Certain statements in this news release are forward-looking
statements made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Zhongpin has based its
forward-looking statements largely on its current expectations and
projections about future events and trends that it believes may
affect its business strategy, results of operations, financial
condition, and financing needs.
These projections involve risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements, which may include but are not limited
to such factors as downturns in the Chinese economy, unanticipated
changes in product demand, interruptions in the supply of live pigs
and or raw pork, poor performance of the retail distribution
network, delivery delays, freezer facility malfunctions, Zhongpin's
ability to build and commence new production facilities according
to intended timelines, the ability to prepare Zhongpin for growth,
the ability to predict Zhongpin's future financial performance and
financing ability, changes in regulations, and other information
detailed in Zhongpin's filings with the United States Securities
and Exchange Commission. These filings are available from
www.sec.gov or from Zhongpin's website at www.zpfood.com.
You are urged to consider these factors carefully in evaluating
Zhongpin's forward-looking statements and are cautioned not to
place undue reliance on those forward-looking statements, which are
qualified in their entirety by this cautionary statement. All
information provided in this news release is as of the date of this
release. Zhongpin does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required by law.
For more information, please
contact:
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Zhongpin Inc.
Mr. Sterling Song (English and
Chinese)
Investor Relations
Manager
Telephone +86 10 8286 1788
extension 101 in Beijing
ir@zhongpin.com
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Mr. Warren (Feng) Wang (English
and Chinese)
Chief Financial
Officer
Telephone +86 10 8286 1788
extension 104 in Beijing
warren.wang@zhongpin.com
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Christensen
Mr. Han Fang (English and
Chinese)
Telephone +86 10 5971 2001 in
Beijing
fhan@christensenir.com
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Mr. Tom Myers
(English)
Mobile +86 139 1141 3520 in
Beijing
tmyers@christensenir.com
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Ms. Kathy Li (English and
Chinese)
Telephone +1 212 618
1978
kli@christensenir.com
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SOURCE Zhongpin Inc.