CHANGGE CITY, Henan, China, June 5 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (Nasdaq: HOGS) ("Zhongpin"), a leading meat and food processing company in the People's Republic of China ("PRC"), today announced that the Chinese government has issued new regulations designed to promote the modernization of the pork processing industry.
Under the new regulations, effective August 1, 2008, hogs can only be slaughtered by certified processors. In order to become certified, processors must meet national standards regarding abattoir facilities and equipment, water quality, environmental protection and inspection and quarantine. Certified facilities must have an animal epidemic prevention certificate, and separate equipment and areas for pollution-free treatment of ill hogs. In addition, abattoir technicians must have legal health certificates and inspectors must pass a pork product quality inspection examination. Those processors that do not currently meet the new regulations must either become compliant or cease processing pork, with certain exceptions for farmers in remote and rural areas. The new regulations also prevent local governments from restricting the sale of hog products from quarantined and certified facilities outside of the local market.
Zhongpin currently meets or exceeds all requirements under the new regulations. In 2002, Zhongpin was awarded ISO 9001 certification for its abattoirs and pork production operations by the International Organization of Standardization. The company's production lines have passed Hazard Analysis and Critical Control Point (HACCP) under Good Manufacturing Practice (GMP) and Sanitation Standard Operating Procedure (SSOP) in China. In addition, the company maintains all required pork production licenses and certificates from the relevant central and local governments.
"These new standards underscore the Chinese government's efforts to modernize the pork processing industry and encourage competition in local markets," said Mr. Xianfu Zhu, CEO of Zhongpin. "As all of our facilities already meet the stringent requirements of international markets, we view this as an opportunity to increase market share, especially in second- and
third-tier cities that have not previously been supplied with high-quality chilled pork."
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,900 retail outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, contact CCG Elite directly or go to Zhongpin's website at http://www.zpfood.com .
Safe Harbor Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements within the meaning of Federal securities laws. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of the company's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the company's filings and future filings with the United States Securities and Exchange Commission.
For more information, please contact:
Crocker Coulson, President
CCG Elite
Tel: 646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-10-82861788
Email: zhongpin.ir@gmail.com
Web: http://www.zpfood.com
