Pig World
  • News
      • Animal Health
      • Breeding
      • Business
      • Environment
      • EU
      • Food Safety
      • Housing
      • Marketing
      • NPA
      • National Pig Awards
      • New Products
      • Nutrition
      • People
      • Pig Fair
      • Politics
      • Training & Education
      • Welfare
  • Features
    • Animal Health
    • Breeding
    • Environment
    • Farm Visits
    • Herd Recording
    • Housing
    • Marketing
    • Nutrition
    • Products
    • Training
  • Comment
    • AHDB Pork
    • Chris Fogden
    • Dennis Bridgeford
    • Peter Crichton
    • Red Robin
    • Veterinary View
    • Zoe Davies, NPA
  • Numbers
  • Pig Prices
  • Magazines
    • September 2025
    • August 2025
    • 2025 Maximising Pig Health supplement
    • July 2025
    • June 2025
    • 2025 Innovation supplement
    • May 2025
    • April 2025
    • March 2025
    • 2025 Buildings supplement
    • February 2025
    • 2025 Nutrition Supplement
    • January 2025
    • December 2024
    • November 2024
    • 2025 National Pig Awards supplement
    • October 2024
    • September 2024
    • August 2024
    • 2024 Pig Health supplement
    • July 2024
    • June 2024
    • 2024 Innovation supplement
    • 2024 Pig & Poultry Fair Guide
    • May 2024
    • April 2024
    • 2024 Buildings Supplement
    • March 2024
    • 2024 Pig Nutrition supplement
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • 2023 National Pig Awards supplement
    • October 2023
    • September 2023
    • Health Supplement
  • Suppliers
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Classified
  • Events
    • Pigs Tomorrow
    • National Pig Awards
Podcast
Pig WorldPig World
  • News
      • Animal Health
      • Breeding
      • Business
      • Environment
      • EU
      • Food Safety
      • Housing
      • Marketing
      • NPA
      • National Pig Awards
      • New Products
      • Nutrition
      • People
      • Pig Fair
      • Politics
      • Training & Education
      • Welfare
  • Features
    • Animal Health
    • Breeding
    • Environment
    • Farm Visits
    • Herd Recording
    • Housing
    • Marketing
    • Nutrition
    • Products
    • Training
  • Comment
    • AHDB Pork
    • Chris Fogden
    • Dennis Bridgeford
    • Peter Crichton
    • Red Robin
    • Veterinary View
    • Zoe Davies, NPA
  • Numbers
  • Pig Prices
  • Magazines
    1. September 2025
    2. August 2025
    3. 2025 Maximising Pig Health supplement
    4. July 2025
    5. June 2025
    6. 2025 Innovation supplement
    7. May 2025
    8. April 2025
    9. March 2025
    10. 2025 Buildings supplement
    11. February 2025
    12. 2025 Nutrition Supplement
    13. January 2025
    14. December 2024
    15. November 2024
    16. 2025 National Pig Awards supplement
    17. October 2024
    18. September 2024
    19. August 2024
    20. 2024 Pig Health supplement
    21. July 2024
    22. June 2024
    23. 2024 Innovation supplement
    24. 2024 Pig & Poultry Fair Guide
    25. May 2024
    26. April 2024
    27. 2024 Buildings Supplement
    28. March 2024
    29. 2024 Pig Nutrition supplement
    30. February 2024
    31. January 2024
    32. December 2023
    33. November 2023
    34. 2023 National Pig Awards supplement
    35. October 2023
    36. September 2023
    37. Health Supplement
    Featured

    September 2025 issue of Pig World now available

    September 1, 2025
    Recent

    September 2025 issue of Pig World now available

    September 1, 2025

    August 2025 issue of Pig World now available

    August 1, 2025

    2025 Maximising Pig Health supplement now available

    August 1, 2025
  • Suppliers
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Classified
  • Events
    • Pigs Tomorrow
    • National Pig Awards
LinkedIn X (Twitter)
Pig World
Comment

How the numbers paint a grim picture for Australian producers

PW ReportersBy PW ReportersOctober 3, 20183 Mins Read
LinkedIn Twitter Facebook Email

John Riley_RT

John Riley (pictured) is a consultant specialising in business management and production systems. Clients include family farms, commercial companies, industry organisations and government departments across Australia.

Pig producers in Australia are facing financial pressure due to low market price and high feed costs. The low market returns are due to an increase in sow numbers, from about 250,000 in late 2014 to 278,000 in June 2018. The high feed cost is due to soaring grain prices as a result of drought conditions in the eastern states.

National benchmarking data on the financial performance of the pig industry is limited since the emphasis has been on recording production performance indicators.

Since 2008 a group of 13 Queensland family businesses representing around 9,000 sows producing bacon pigs have been recording and benchmarking the financial and physical performance of their enterprises quarterly.

In the last 20 months, data from Toowoomba Focus, formed and facilitated by the Department for Agriculture & Fisheries and myself, have been in used in discussions with government to confirm the plight of the industry.

Australian Pork Limited (APL), funded by a producer levy on every pig slaughtered and a research contribution from the Federal Government, stated in October 2015 that pork consumption was increasing by 4.8% year-on-year (2010-15). At that time, the average all pig price was £1.86/kg with
an operating margin of £0.25/kg deadweight.

The industry was minded to expand, due in part to high prices, the euphoria of the increase in consumption and producers investing in group housing of pregnant sows to meet the 2017 changes in the welfare code. Many producers increased sow numbers to spread the investment over increased output.

In 2016 operating margins increased and for the six months ending December 2016 the Focus Group average all pig price was £1.91 and the average operating margin was £0.43/kg DW.

In Queensland pig meat prices then fell dramatically after Christmas 2016 and by June 2017 average returns were down by £0.29/kg of pigmeat sold. The fall in pigmeat price continued into 2018 with current returns down a further £0.24 on 2017. In the same period, average feed cost has increased by almost £20/tonne.

Drought conditions have significantly reduced grain supplies. Winter crop yields in 2018-19 are expected to down by 47% in New South Wales, 50% in Victoria and 70% in Queensland. The shortfall is being covered by shipping grain from Western Australia.

The year has been one of the driest in Queensland since records began, putting summer sorghum plantings at risk and placing pressure on grain supplies.

In the last 12 months some producers have stopped mating sows and will exit the industry. Others have reduced sow numbers and made cost savings which are not necessarily in their businesses’ long-term interests.

Market returns will increase as herd size and, in turn, pig slaughtering’s fall. However, grain will be in short supply to at least mid-2019. The boom times of 2015 and 2016 are now a distant memory as feed costs continue to rise, more businesses become unsustainable and more producers are forced to exit the industry.

 

Share. LinkedIn Facebook Twitter Email
Previous ArticleI have good reason to bang on about preparing for ASF
Next Article NPA urges members to have a say on the future of AHDB
PW Reporters

Read Similar Stories

Vet View: Managing heat stress in pigs

August 6, 2025

Comment: Was the move indoors the right decision for us?

August 4, 2025

Comment: British pork reimagined: Data-led marketing for a changing consumer

July 9, 2025
Latest News

Cranswick ‘disappointed’ after Environment Agency rejects permit for proposed Norfolk development

September 4, 2025

Nearly 50,000 pigs culled after African swine fever outbreaks in Latvia and Estonia

September 4, 2025

Scotland’s PRRS project to receive further government funding

September 4, 2025
Sponsored Content

Enhancing Weaned Pig Health and Performance with Zinc and Iron

August 1, 2025

THE GATEKEEPER OF RESPIRATORY HEALTH – MYCOPLASMA HYOPNEUMONIAE (M.HYO)

April 30, 2024
Current Pig Industry jobs
  • Pig Stockperson – Ref 1774 Aberdeenshire

    • Aberdeenshire
    • Roadhogs Recruitment Ltd.
    • Full Time
  • Pig Stockperson – Ref 1773 Aberdeenshire

    • Aberdeenshire
    • Roadhogs Recruitment Ltd.
    • Full Time
  • Senior Pig Stockperson – Ref 1772 Aberdeenshire

    • Aberdeenshire
    • Roadhogs Recruitment Ltd.
    • Full Time
GETTING IN TOUCH
  • Advertise
  • Contact Us
  • Meet The Editors
  • About Us
  • Email Newsletters
  • Subscribe
  • Reuse permissions
OUR SOCIAL CHANNELS
  • Twitter
  • LinkedIn
PARTNER EVENTS
RELATED SITES
  • Farmers Weekly
  • Agronomist & Arable Farmer
  • Farm Contractor
  • National Pig Awards
  • Pigs Tomorrow
  • Poultry News
  • Weekly Tribune
  • Privacy Policy
  • Cookies Policy
  • Terms and Conditions
© 2024 MA Agriculture Ltd, a Mark Allen Group company

Type above and press Enter to search. Press Esc to cancel.