Australia-Pig Slaughter lowest in 20 years as prices jump 30%.

AUSTRALIA-PIG SLAUGHTER LOWEST IN 20 YEARS.

THE number of pigs slaughtered in Australia annually - 4841.8 million - is at its lowest level since August, 1997.

This is according to Australian Pork Limited’s latest import, export and domestic production report. The number is also a 9.5 per cent decrease on the previous year.

APL chief executive Andrew Spencer said the low number of pigs in the system meant export markets had "flatlined".

"Wholesalers are getting very good money domestically, so there’s no incentive to look for export markets," he said.

"With the $A and the exchange the way it is, you would expect that to have a pretty positive impact on exports, but it hasn’t come about that way. The industry is still suffering from a shortage of supply, so we haven’t been able to take advantage of the lower $A.

"The annual export volume of Australian pigmeat as of December, 2008, was 42,469 tonnes, a 9.3pc decrease on the past year. Exports were worth $138.5 million, down 8.1pc on December, 2007."

The good news was that the average dressed weight price was $3.61/kg, an 18.5pc increase on the previous year.

PIG prices are forecast to take a whopping 31 per cent hike in 2008-09, thanks mainly to reduced domestic pork production, according to ABARE.

High feed-grain prices and a strong $A in 2007-08 triggered a major pruning of Australian pig numbers, which is now proving a blessing for producers who stayed with the industry.

But the good news doesn’t seem to last long in the local pork sector.

ABARE forecasts Australian pig prices will fall by 5pc in 2009-10, to average $3 a kilogram, because of increased pork supply and lower feed grain-prices.

Pig prices (in 2008-09 dollars) are projected to decrease to about $2.76/kg by 2013-14.

ABARE said this prediction was based on an expected increase in production and an assumed appreciation of the $A over the medium term that would lead to cheaper imports.

Despite the forecast decline in prices, lower domestic production compared with recent years would keep prices relatively high, ABARE said.

Domestic production declined by 9pc between 2002-03 and 2006-07.

In response to lower domestic production, imports had increased to satisfy strong demand for pork, ABARE said.

* Extract from Pig Industry News in Stock Journal, March 26 issue.