June 4, 2010

Australian pork prices face pressure

Australian pork prices are under severe pressure from a combination of factors including the import market; closure of abattoirs; domestic demand and the increased risk of trading.

This is according to Aussie Pork Supplies director James Bredhauer who said import prices are decreasing and the volume of imported product has continued to increase.

The domestic demand however has been steady through local retailers and food service industry outlets while home consumption rates have remained similar to previous years with a decrease in wastage and an increase in utilisation rates.

Bredhauer said most backfatters being processed at the moment are going into the freezer on the back of low prices for imports and slow demand.

He noted that a major concern is the wholesale meat market and processing industry. It is under pressure with the closure of abattoirs in Queensland and NSW during the past six months along with wholesalers and retail businesses.

The increased risk factor of trading has also affected the market and caused some producers in the mid processing level to cut back on the volumes and trade with their regular sound end-users which in turn may lead to a reduction in demand.

There have been many protests regarding the labelling issue over the years and nothing has been done about it. Bishop said the most difficult issue in the pork industry was the market because you cannot predict the prices of grains and so on in 12 months time so it makes it difficult to have even a five-year plan.