April 9, 2008

Australian pig producers disappointed at lack of industry protection

Australian pig producers express dismay that the Productivity Commission had rejected the industry's bid for pork imports protection, according to Australian Pork Limited (APL).

A report by the Commission suggests that the industry's threats are caused by high domestic feed costs, which do not warrant safeguard actions.

However, APL chief executive officer Andrew Spencer reiterates that the industry is hurting badly due to cheap imports of frozen pork and the situation is made worse by high grain prices.

The Commission's decision will cost the livelihoods of farmers and ultimately the consumers and that it is ironic how Australia's pork imports come from countries that actively subsidise their pig farmers and pork industry with taxpayers' funds, according to Spencer.

Spencer further said that 70 percent of hams, bacon and small goods market are sourced from overseas and the share will only increase in the current environment.

"Other livestock industries such as beef, lamb and chicken do not suffer direct competition from imports and therefore do not have their domestic trading environment left open to these pricing distortions," said Spencer.