January 4, 2024

Australian pork production set to rise 2% in 2024

In a recent outlook presented by the United States Department of Agriculture's Global Agricultural Information Network, Australia anticipates a 2% increase in pork production for the year 2024, reaching a total of 480,000 metric tonnes in carcase weight equivalent, BNN Breaking reported.

This growth, stemming from a revised estimate of 470,000 metric tonnes for the current year, is attributed to evolving consumer preferences favouring more budget-friendly meat proteins, particularly pork, in response to surging prices of beef and lamb.

A noticeable surge in pork production marked the first half of 2023 and is projected to extend into the early months of 2024. But the forecast suggests a more moderate growth trajectory as the year progresses. The trajectory might be influenced by potential adjustments in retail meat prices linked to lower cattle and sheep prices, impacting pork production in the latter part of the year.

Australia's pork industry is intricately tied to import prices and competes with alternative primary meat protein sources such as poultry, beef, and lamb. The nation has grappled with diminished supplies of cattle and lambs since 2019, stemming from a prolonged drought followed by herd and flock rebuilding. This supply challenge has triggered a notable upswing in beef and lamb prices.

While pork prices experienced an increase, the magnitude was comparatively subdued when compared to the surge in beef and lamb prices. Poultry prices registered only a marginal uptick. Consequently, Australian consumers have shown a discernible shift in their meat consumption patterns, favouring pork and poultry over beef and lamb. Despite being a substantial producer of beef and lamb, Australia's domestic market remains well-supplied, indicating that consumer choices are more responsive to price dynamics than supply constraints.

Notably, Australia's pork production is predominantly consumed domestically, with less than 10% being exported. The nation, in fact, imports more pork than it exports, underscoring the significant impact of import prices on the dynamics of the local pork industry.

-      BNN Breaking