Australian pork industry inquiry
The Productivity Commission has been ordered by the
Australian government to review the option of imposing safeguard tariffs on pork
imports in order to save the beleaguered industry.
Australian Pork Limited's CEO, Andrew Spencer, commented in a press release
today that record import levels from Denmark, Canada and the US are squeezing
prices of local producers. This coupled with the rising grain costs, as a result
of the drought, are making it difficult for the industry to
"Australian consumers would
be horrified to learn that approximately 70% of their ham, bacon and smallgoods
originate from imported pig meat," he said.
Communications Manager for Australian Pork, commented that "losses were
amounting to AUD$4m (US$3.5m) per week. The cost of producing pigmeat has risen
to AUD$3 (US$2.7) per kilo. However, farmers are only receiving AUD$2.30 (US$2)
at the farm gate."
The Commission has been asked to report back within two months (by December
14) as to whether the situation is so grave to warrant tariff protection.
â€¢ Australian Pork Limited
â€¢ Australian Productivity Commission
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