Hon Simon Crean MP Minister for Trade
Acting Minister for Agriculture, Fisheries and Forestry

Acting Minister for Agriculture, Fisheries and Forestry Simon Crean today released the final Productivity Commission report on pigmeat imports, Safeguards Inquiry into the Import of Pigmeat.

Whilst acknowledging that many pig producers are under significant financial pressure, the report finds that the source of that pressure is higher grain prices, not imported meat.

For that reason, it finds that safeguard action against pigmeat imports is not warranted.

The Productivity Commission undertook the inquiry because under World Trade Organisation rules, it is the “designated body” – the only body that can determine whether safeguard mechanisms are appropriate.

During its inquiry, the Commission received more than 120 submissions and 30 individuals and organisations participated in public hearings around the country.

“Higher feed costs have been the dominant cause of the recent and sudden decline in industry profitability”, the report finds.

It also notes that “even without imports, the price sensitivity of consumers ... would limit the scope to pass on higher costs”.

Other key comments from the final report included:

• The pig industry is experiencing a cost-price squeeze and the availability and high price of feed has caused a significant increase in production costs;
• High feed grain prices are not unique to Australia and are making trading conditions difficult for livestock producers worldwide; and
• The number of producers and employment in the industry in Australia has fallen since 2005, but the industry has become more efficient with more large operations and fewer small enterprises.

“The Federal Government will consider this report carefully, in consultation with industry,” Mr Crean said.

“The Minister for Agriculture Tony Burke has met with many pork producers and heard first-hand of the difficult times they have been facing.

“The Government understands the frustration of the pigmeat industry at the subsidies provided by some of our trading partners.

“Mr Burke has arranged to meet industry representatives on his return to Australia when he will discuss in detail the report’s findings.”

The Commission’s findings will be notified to the World Trade Organization.

Details of the inquiry, including its terms of reference and copies of its final report, are available at www.pc.gov.au or by phoning (02) 6240-3239.

Media contacts:
Mr Crean’s Office – David Walker (02) 6277-7420 or 0407 133 020.
Department of Foreign Affairs and Trade: (02) 6261-1555
Mr Burke’s Office – Ann-Marie Wilcock (02) 6277-7520 or 0413 872 275