This strong demand continues the pattern that was registered earlier in the year with pork servings for the March quarter of 2004 increasing 21.7% on year ago levels.

With reproduction rates severely affected by the extreme summer heat waves earlier in the year, production has begun to slow and subsequently supply is tightening. Eastern states pork prices have risen 4% in the past month to currently average 248c with bacon rates experiencing an 8% increase to average 219c/kg cwt.

Direct to works and wholesale prices for lamb and beef have progressively increased during the past two months, resulting in a gradual shift towards pork. Subsequently, strong retail, wholesale and processor demand in the eastern states have helped boost pork and bacon prices.

The manufacturing trade has also increased in intensity with many starting to build up supplies for the peak Christmas demand period. This comes amid concerns that supply will tighten further in the coming months.

Source: eFeedLink - 4th August 2004