Shortage of Pigs Leads to Soaring of Prices
AUSTRALIA - It is likely that there could be fewer hams on Australian tables this Christmas because of a national shortage of farmed pigs.It is estimated that 40 per cent of pig farmers have quit the business in the past year, with industry figures blaming high grain prices and competition from subsidised pork producers in North America and Denmark.
Australian Pork Limited (APL) CEO Andrew Spencer says high grain prices is one of the causes the shortage.
"The other reason was that there was a huge surge of imports coming from North America and Europe, mainly from subsidised countries and that meant there was no market for the Australian product if prices went way down about this time last year," he said.
"A lot of producers got out of the industry. Ultimately, that has to result in a shortage of pigs and that is what we are now seeing."
But he says there isn't a move to push up prices to help out producers.
"Producers would love to be able to manipulate prices like that, but it is not that easy," he said.
"There really is a shortage out there. You can check it all round the sale yards and you can see it in the pig prices being paid."
ABC reports that Mr Spencer is urging consumers to continue supporting the industry.
"What we are trying to do is ask consumers to hang in there. Pig producers in Australia have been through an extremely tough time and those that are still in it have got to now start making some profit so that they can remain in it," he said.
"We are really encouraging people to go out and have their roast pork which is guaranteed to be Australia. It will be fresh meat and to have their ham on the bone, because when you buy ham on the bone that is also Australian for quarantine reasons."
Pig farming has been a shrinking profession for decades. In the 1960s Australia had about 40,000 or 50,000 pig farmers.
Today the industry estimates there are no more than 1,500.
One former pig farmer, who wishes to remain anonymous, was in the business for 28 years.
He quit because he says there is no money in it.
"It was not viable. You could not make a good living out of it," he said.
"Costs were higher than your income. When things got good, you'd get on your feet and then something would happen.
"Either you would have a drought or then grain prices go through the roof, or you'd have a glut of pigs and pig prices would go through the floor."
While people familiar with the pig industry say pork prices are rising, it is not clear how much consumers will pay in the end.
Allan Waldon manages Eastern Roads Quality Meats in Turramura, in Sydney's north.
He thinks it is unlikely that pork prices will double during the week of Christmas.
"I don't think we'll see it like prawns... but I think you might see prices slightly higher than they are at the moment."