PORK prices are rising rapidly on the back of Christmas demand for ham.
Recent pig sales at Dublin, South Australia, recorded a record average for baconer pigs of more than $4 a kilogram liveweight, rising by 0.45 cents/kg.
Market reporter Peter Brechin traced back records to discover bacon pigs making 20 pounds ($40) during the Korean war between 1950 and 1953.
However Forbes pig stock agent, Scott Reid of V. C. Reid and Sons, said baconers were making $300-plus several weeks ago.
Forbes sales clear more younger pigs than baconer and porker categories.
“Last sale of 800 head, 600 weighed under 30kg making $170 to $180 each,” Mr Reid said.
“As little pigs are making so much money no one’s taking them on to heavy weights.
“Historically bacon pigs were making $200 to $250 so growers see no reason to spend extra on feed for an extra 10 to 15 weeks.”
The lower Australian dollar was another impediment.
“This makes imported product a lot less favourable to importers,” he said.
Some weeks ago a Central Coast butcher asked Mr Reid where he could source hams.
“So there is a supply problem somewhere,” he said.
“Traditionally prices tend to rise a few months leading to Christmas but maybe the numbers are just not there this year.”
Australian Pork Limited (APL) marketing manager Peter Haydon said data revealed last week’s baconer prices were the highest APL had records for, at $3.62/kg.
“And it’s going up,” he said.
“The dollar exchange rate may have changed making imports more expensive but hasn't yet got to the point where it would change an importer’s business decision.”
Steadily rising demand for pork could be the determining factor.
“In each of the past five years there has been an average 4.8 per cent increase in demand for Australian pork,” Mr Haydon said.
“While demand was rising each year, supply was increasing by some three per cent.
“That’s what has caused the steady growth and it’s simple economics driving up prices.
“It really rests around fresh pork becoming more popular.”
