According to The Australian Financial Review, Australians are eating more pork than ever before but farm gate prices have plunged to levels where many producers are struggling to break even.
Australian Pork Limited is redoubling its efforts to boost consumption after aggressive increases in production over the past 12 months caused the sharp fall in prices.
It will be no easy task given domestic fresh pork consumption is already up by 25 per cent since 2010. That sort of growth is considered spectacular and market-leading in retail meat sales where consumers are generally habitual in their buying patterns.
Farm gates prices peaked at $3.70 a kilogram on average in 2016 but started 2018 at about $2.70 a kilogram.
"We estimate that a lot of pig farmers have a cost of production around that $2.70 level so, if you are selling pigs at the same number, you are not making any money and that is of course not sustainable," APL chief executive Andrew Spencer said.
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