27 Jan 2009

Pork price tipped to rise

1:21 pm on 27 January 2009

Consumers are likely to pay more for pork this year as producers try to recover from last year's downturn.

The Pork Industry Board says production capacity has been cut by 10% in the past year as falling returns forced some farmers out of the market.

Chief executive Sam McIvor said crippling grain prices meant many farmers were losing $50 for every pig sold over the past year, which for the average farm meant a loss of about $400,000.

He said a recent rise in wholesale prices is helping those left in the industry to start making a profit again.

The board says consumers may have already noticed an increase in supermarket pork prices, and with lower production expected this year, prices may rise further still.