July 12, 2007

Multiple problems dog Australian pig producers
 

Australian producers are having to cope with low pork prices due to increased imports, the strong Australian dollar and higher feed costs, according to Australian Pork Limited.

Australian Pork Limited chief executive, Andrew Spencer, said imports are affecting local prices. Spencer said Australian pork demand typically dips at this time of the year, after peaking in Christmas and Easter.

Processors have ordered more imports during the few months when local prices were high, he said. The strong dollar also helped when it came to buying imports. Now, Spencer hopes local prices have hit bottom and would start rising again.

A fire at a major abbatoir in Southern Australia is also creating a bottleneck and affecting slaughter rates.

Drought and high feed prices added more burdens to what has already been a bad year, he said.