December 24, 2007

Australia's productivity commission says no to pork import restrictions

The Productivity Commission of Australia found no sufficient basis for immediate trade restrictions to protect Australia's pork industry, a report that shocked domestic producers.

The commission's initial report has identified a sudden increase in imported pig meat, but says that it does not find the trend as a serious threat to the local pork industry.

Instead, it said that Australia's pig producers are reeling from financial losses due to high feed prices and not by increased imports.

Andrew Spencer, from Australian Pork Limited, expressed utter disappointment on the finding. He said that APL was baffled that the PC has chosen not to see the link between the record levels of pork imports and the worst producer profitability crisis.

Spencer commented further that imports had increased by 40 percent in 2007 and these new findings will result in more exits by producers.

However, the commission said that trade protection could still be recommended in the final report due in March.