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Pig farmers abandon problem-plagued industry
7 Apr 2004
The strong $AUD, low world prices and high feed costs are forcing some pig farmers to abandon the industry. Analysts say there's no immediate relief in sight, as domestic consumption is forecast to fall, and cheaper imports could follow the relaxation of quarantine standards. Pork imports increased by an average 17 per cent a year over the past three years, according to ABARE.
Pig slaughters were down in February this year for the ninth consecutive month, production was down 10 per cent on the same period in 2003 and the domestic price per kilogram has dropped from $10.65 in 2001-2002 to $10.19 this financial year, with further falls to come. Pork exports fell dramatically in the year to December 2003, dropping 24.5 per cent.
Australian Pork Ltd attributed the falling production rate to smaller operators leaving the industry. These farmers were unable to absorb higher feed costs resulting from the drought, a situation compounded by the rising $AUD.
The situation is so serious that the Federal Government will set up a government and industry working party to tackle the problems.
Australian Financial Review, 5/4/04.
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