THE AUSTRALIAN pork industry will fight back from the current pricing crisis caused by cheap imported meat according to Andrew
Spencer, chief executive of Australian Pork Limited.
Australian pork producers have said they are selling pigs for less than the cost of production in some cases due to a flood of imported cooked cuts such as ribs and bellies, with the total cost to industry of the cheap meat estimated at up to $80 million by Australian Pork Limited.
Mr Spencer said the industry had been confronted with significant volumes of imported bacon and ham for some years, but said the new wave of imported cuts, which can be stored unrefrigerated for long periods of time, had become a progressively larger problem this year.
“The imported bellies have probably been coming in for 18 months or two years but the volume has really become significant this year.
However, he said he viewed the current situation as a blip on the horizon rather than a permanent alteration in the dynamic of the industry.
“There are a lot of positives in Australian pork, consumption of pork is lifting, we just need to make sure people are actively seeking out the Aussie product – many would not guess when eating pork belly in a restaurant that it may not be from Australia.”
He said the pre-cooked cuts could sit on the shelf for up to two years without refrigeration. Under Australian quarantine law they must be cooked, but there is no restriction on the type of cuts brought in.
“They’ve basically been sterilised in the pack and consumers have no idea – there are no labelling requirements on meat served in restaurants.
“We need to get consumers asking if the pork they are eating at restaurants is Australian.”
He said the cheaper foreign ribs and bellies cut out a valuable income stream for Australian pig farmers.
“This influx of cheap processed ribs has had a significant effect on the price of fresh Australian pork ribs, which in turn affects overall pig prices.
“We are forecasting this could equate to up to $80 million lost at the farm gate in just a year.”
But he said the answer was not to call for increased restrictions on imports.
“We are an agricultural trading nation so we can’t just call for more protection, although there would be pork producers at present that would probably welcome that move.”
Mr Spencer also said it would be difficult to restrict the flow of imports through anti-dumping legislation, used to good effect in the tomato industry.
“It can be very difficult to define what the dumping entails, is it impacting that particular cut or the carcase? It is a grey area.”
However, in spite of the problems with declining pork prices since the start of 2017 he shrugged off suggestions that pork was set to ‘do a dairy’ and plunge into a serious period of decline.
“It’s drastic, there’s no doubt there are some producers that are doing it very tough at present, but the fundamentals still give reason for optimism.
“Pork consumption in Australia is going up, fresh pork consumption has risen from 8kg a head per annum to 10.5kg a head in the last couple of years.
“The rise of the celebrity chef has made people more aware of pork and its versatility, so there are positives there.”
He said Australian producers would continue to highlight their track record in areas such as animal welfare and food safety.
“We’ve got a great product and we just need to get that message across.”
Mr Spencer acknowledged some of the rise in consumption was due to the discount against traditional Australian meats such as beef and lamb but said equally the premium end of the market was growing.
“We’ve seen a large rise in the production of outdoor sows, that basically mirrors the increase in demand from higher value markets.”
Mr Spencer said the industry was also targeting the Asian market.
“90pc of the industry is geared towards the domestic market, we are looking to grow that export business, particularly into the more developed Asian markets.”
He said exports would primarily be of fresh pork.
“We see the fresh sector as where we have a competitive advantage.”