PORK prices have finally begun to climb after 18 months of depressed returns, but the gains are being offset by the skyrocketing cost of grain.
Elders/T&D Pig Marketers auctioneer Garry Tiss said this week’s Dublin market had pens from five farmers exiting the industry. These producers hailed from the Mid North to the South East.
“About 60 per cent of the sows offered were from people going out of pigs,” he said.
“We know grain yields are going to be down in SA, so people are asking themselves ‘am I better off getting $400 a tonne for my wheat, or feeding it to pigs?’”
Sows are continuing to make less money than heavy lambs at Dublin, with lambs topping $224 on Tuesday, and sows hitting $210. Prices were down as low as $90 a sow for lighter types.
But baconer prices have lifted by about 25 cents a kilogram to 30c/kg at Dublin in the past month, reaching a high of $2.34/kg for females this week.
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Hooks prices have also experienced a solid jump of about 50c/kg, at about $2.70/kg to $2.80/kg.
Mr Tiss said while it was pleasing to see prices rising, the cost of production had also risen by 50c/kg, so profitability was still being tested.
Historically, pork prices used to rise in the lead-up to Christmas, but Mr Tiss is not expecting that to happen this year.
“The Christmas lights are on, but no one has flicked the switch and started buying up yet,” he said.
“With the price of pigs so cheap this year, a lot of legs were put away early.”
Mr Tiss said further industry pressure was added this year by pigs from WA and NSW coming into SA, but he expected that supply would lessen in the new year, which should aid 2019 prices.
Speaking at a Brand SA industry briefing on the agribusiness sector last week, Pork SA chairman Mark McLean said while the sector was producing a nutritious and in-demand product, there was a very fine balance in the supply chain. So, when extra numbers came onto the market last year, coupled with an abattoir fire in Qld, the effect rippled through the whole industry.
“We went from receiving $4/kg in 2014 and making $50 a pig to receiving $2-$2.60/kg and losing $50 a pig,” he said.
“Unfortunately as the season tightens, hay, straw and grain are very difficult to procure in the volumes we need. We’re also competing for feed with interstate farmers who are receiving transport subsidies, which makes it very difficult.”
Mr McLean said 75 per cent of the processed pork consumed in SA was imported, so Pork SA is encouraging people to seek out local produce, with the same message coming from Brand SA’s I Choose SA Day on Saturday, October 27.
“We are asking all South Australians to buy fresh Australian pork, so look for the pink PorkMark logo which is used on packaging where the pork is grown by Australian pig farmers,” he said.
“Otherwise, look for the ‘country of origin’ label for greater than 90pc Australian ingredients or 100pc Australian pork.”
