The Australian pork industry is in crisis with local producers driven to the wall by low-priced imports and rising feed costs. Mainstream pig farmers, tired of losing money because of record volumes of imported processed pork products, such as ham and bacon, are quitting the industry in record numbers. Australian Pork Ltd chief executive Andrew Spencer said: “We had record volumes of subsidised imports from Denmark and North America, and that has put an oversupply into the market, and depressed prices. Producers are really suffering.” Imports increased by 40 per cent in 2007 and accounted for 64 per cent of the processed pork market. The industry was liberalised in 1994 following the Uruguay round of WTO talks but imports initially were negligible. Research shows that since 2002 imports have risen by 126 per cent, and the rate is accelerating, jeopardising the future of the $2bn industry. Only boneless, processed pork or ham can be imported. Most of the imports come from Denmark, Canada and the US, countries Mr Spencer said subsidised their pork industries. With grain prices at record levels, and imports depressing prices, Mr Spencer estimates pork producers are losing up to $50 per pig. By Christmas last year the industry was losing $3.5m a week. The Australian, January 14.
Jan 13
