Pork producers tackle glut

Press, 5 July 1985, Page 11

Pork producers tackle glut

A shipment off more than 30 tonnes of pig meat has left Christchurch for Singapore, but South Island producers have bEen warned that while it will ease the present glut, the future of the market is not assured. A South Island Pork Industry Board member, Mr George Timperley, said a

lot of work was still to be done to consolidate the market, with European producers able to export to Singapore at reasonable prices and quality. The consignment was the first, following a trial shipment sent from the South Island in January. While the trial shipment

was well received in Singapore Mr Timperley did not see that market as the answer to all the present over-production problems. He believed the current downturn in the industry caused by over-production of pork would balance itself out with more intensive marketing on the New Zealand market. The pig meat glut was not as serious in the South Island as the North, Mr Timperley believed, with the main problem facing the smaller producers in the South Island being increased costs and removal of subsidies. A survey of South Island pig farmers to determine how many were in financial difficulties was underway, but would not be complete until August or September, he said. Mr Timperley said it was important that producers gauge the market “very carefully” before going into intensive producing programmes. Negotiations were underway to get South Island pig meat on to the Australian market, Mr Timperley-said, but it could be up to a year before a breakthrough was achieved. With the recent ban on the shipment of pigs from the North to the South Island the possibility of pig meat exports to Australia was again introduced. South Island pigs have been declared free of Aujeszky’s disease following a recent survey. If export clearance was given, care would have to

be taken not to oversupply the Australian market by adding too much New Zealand product to the existing supply, Mr Timperley said. The possibility of a tradeoff with the Australian pork industry under the provisions of the closer economic relations agreement was a possibility he said. If that was possible surplus New Zealand pig meat cuts could be exported and different cuts imported, with an exchange deal struck to prevent oversupply on both markets. The pig meat industry had become a victim of its own efficiency, he said, with modern breeding methods and more efficient management of pigs creating the present over-production problem. The Pork Industry Board is urging farmers to reduce pig meat production following a cut price deal with supermarkets and wholesalers to clear a backlog of stored meat. A production pause was necessary to restore equilibrium to the market, the board’s manager, Mr David Dobson said, or there would be ‘disastrous” results for farmers. The schedule price paid to farmers fell by 10 cents a kilogram, on March 25, and since then has declined by another 20 cents, he said. To move the backlog of meat in store the board has arranged a series of specials to supermarkets and major meat wholesaling groups which brought their prices down accordingly, Mr Dobson said.

“Between 700 and 1000 extra pigs are being sold each week. Bacon has been selling in Auckland recently for $4.99 a kilogram when the usual price is about $9 a kg.” Yet there were indications smaller outlets had not yet passed on the full benefit of the drop in the bacon schedule to their customers, he said. “The savings for customers should be showing up now, but in some cases they are not.” The board has advised consumers to shop around for specials as there are some very good buys at present, Mr Dobson said.