Grain Prices Are to Blame, Not Imports

AUSTRALIA - Higher grain prices are behind financial pressure faced by pig farmers, a Productivity Commission report has found.
calendar icon 7 April 2008
clock icon 3 minute read

A report on FoodWeek, says the final report on pigmeat imports – Safeguards Inquiry into the Import of Pigmeat - has been released by Acting Minister for Agriculture, Fisheries and Forestry Simon Crean.

While acknowledging that many pig producers are under significant financial pressure, the report said that the source of that pressure is higher grain prices, not imported meat.

For that reason, it finds that safeguard action against pigmeat imports is not warranted.

The Productivity Commission undertook the inquiry because under World Trade Organisation rules, it is the “designated body” – the only body that can determine whether safeguard mechanisms are appropriate.

During its inquiry, the Commission received more than 120 submissions and 30 individuals and organisations participated in public hearings around the country.


News reports says that pig producers have been left reeling from the reports outcome. They are devastated that the Productivity Commission has not found any means for restricting cheap imports - a fact they say is crippling their business and risking the nation's food safety and economics.

New South Wales Farmers Association pork committee chairman, Malcolm Gett, says that decision is wrong and many more farmers will now exit the industry, leaving Australian consumers more vulnerable to price hikes.

He said that pork will become more expensive if the industry has to rely on even more imports
"There'll be no competition and the supermarkets will be able to basically charge whatever they like." he said

View the FoodWeek story by clicking here.

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