Oz: pig supply shortfall raises prices

05-11-2008 | |

An increasing demand for pork products is not the reason behind the increasing prices for Australian pigs, but rather the lack of supply available. The dropping Australian dollar making imports less attractive has also helped drive rates to record highs, after a lengthy period when pig farmers were losing as much as 50c/kg.

Many Australian farmers quit the pig industry as it became increasingly difficult to make a profit, therefore contributing to the shortfall. In Forbes, NSW, 700 pigs are expected to be sold at the next fortnightly sale, but it used boast as many as 2000 on a weekly basis.

Over-the-hooks prices increased 20 cents a kilogram (carcase weight) this week to a high of $4.10/kg for pork (45kg to 60kg), and a top of $3.85/kg for bacon pigs (60kg to 75kg), according to the National Livestock Reporting Service.

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