October 19, 2007

Imported pork accounts for 75 percent of all processed pork in Australia

An estimated 75 percent of all processed pork, ham and bacon in Australia is made from subsidised imported cheap frozen pork, QAF Meat Industries' Managing Director Paul Pattison told local media.

There is now a serious crisis facing the Australian pork industry due to the huge costs of producing pigs as the prolonged drought pushed up grain prices, he said.

These costs cannot be passed on to consumers due to competition from subsidised imports, he added.

In view of current market conditions, QAF said it would reduce its stock on a number of Victorian farms until the market returns to normal. The company is also expecting to cut 100 jobs over the next six months.

New South Wales-based QAF is said the largest pork producer in Australia, accounting for 20 percent of the local pork supply. With total production in excess of one million pigs per year, it is four times larger than its nearest competitor in Australia and ranks in the top 30 worldwide.