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Slow Recovery for Australian Pork Industry

by 5m Editor
14 October 2008, at 9:51am

AUSTRALIA - More than one out of five pork producers have been forced to quit the industry this year.

ABC reports that at the start of the year, the industry struggled to cope with cheap imports because of the high Australian dollar and record feed grain prices.

Australian Pork Limited's (APL), Andrew Spence, says the recent fall in the dollar should make it easier to compete domestically.

"Typically, the smaller producers who are more exposed to profitability problems because they don't have the scale for efficiency are the ones that'll be getting out quickest," he says.

"As a percentage of the number of producers, it's probably quite high, you're probably looking about 20 per cent.

"As a proportion of production, the numbers we're seeing would indicate a reduction somewhere between 10 to 15 per cent."

5m Editor