Pig prices in Oz continue to climb
Australian forecasters are predicting a massive 31% increase in pig prices in 2008-09, due mainly to reduced domestic pork production over the last year.
High feed grain prices and a strong Australian dollar in 2007-08 prompted a major drop in Australian pig numbers, which is now proving a blessing for producers who stuck with the industry.
While this is good news in the short term, forecasters are predicting a turnaround in 2009-10 to a 5% drop, because of increased pork supply and lower feed grain prices.
Despite the forecast decline in prices, lower domestic production compared with recent years would keep prices relatively high, according to reports.
Import competition is predicted to ease off over the next few years due to the lower dollar and a decline in sow numbers in Canada, Denmark and the US which now provided the bulk of imports. Exports however, mainly to Singapore and NZ, were forecast to rise by 3%c in 2009-10.
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