Duck and horse meat was recently found in mutton sold in agriculture markets in Zhuhai, Guangdong province, Yangcheng Evening News reported.
All seven mutton samples purchased in the agricultural markets of Tangjia, Chaoyang, Ningxi, Gongbei, Kou'an and Xiawan in Zhuhai, which borders Macao, were found by the city's exit-entry inspection and quarantine bureau to have other types of meat, including pork, duck and horse, the newspaper said.
The price gap between mutton and other meats have been cited as the main reason that illegal traders produce and sell fake mutton.
According to local marketing prices, every half-kilogram of mutton costs at least 35 yuan ($5.80) while every half-kilogram of pork, duck or other meats is less than 22 yuan.
Government officials have promised to launch a crackdown on counterfeit mutton before the Lunar New Year, which fall on Jan 31.