Australian pig prices seen to increase 31 percent in 2008-09

Australian forecasters are predicting a massive 31 percent increase in pig prices in 2008-09, mainly due to reduced domestic pork production over the last year.

High feed grain prices and a strong Australian dollar in 2007-08 prompted a major drop in Australian pig numbers, which is now proving a blessing for producers who stuck with the industry.

While this is good news in the short term, forecasters are predicting a turnaround in 2009-10 to a 5 percent drop because of increased pork supply and lower feed grain prices.

According to reports, despite the forecast decline in prices, lower domestic production compared with recent years would keep prices relatively high.

Import competition is predicted to ease off over the next few years due to the lower dollar and a decline in sow numbers in Canada, Denmark and the US which now provided the bulk of imports.