October 18, 2007

Australian government pushes for tariffs against foreign pork

The Australian government is considering whether to impose additional tariffs on pork imports to safeguard the interests of Australia's pork producers, who are struggling with high feed costs.  

Agriculture Minister Peter McGauran, along with the trade minister asked the Productivity Commission to report back within two months on whether the situation facing pork farmers would require tariff protection, according to Australian newspaper The Age.

Imports now account for 70 percent of the Australian pork market. Pork imports more than doubled in the past four years, rising from 84,000 tonnes to 190,000 tonnes, Australian Pork communications manager Emily Mackintosh told the paper.

Drought in the country has doubled feed costs while

The cost of grain has doubled with the drought, while the soaring dollar has seen most of the big brands replace Australian pork with subsidised imports, mostly from Denmark, Canada and the US, she said.

The industry is now losing $4 million a week, Mackintosh said.

While the cost of producing pigmeat has risen to AUS$3 a kilo, farmers are still being paid only $2.30 at the farm gate, she said.

The commission refused the government's call to impose tariffs twice, once in 1998 and the last time in 2005.

Mackintosh said this time, the focus on damage to farmers may yield a different result.