Page 6 - April 2018

GRINDER MIXERS
Superior Feed Grinding Action
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• 72 reversible hammers
• Ingredient supplement hopper
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• 4 Ton Tank • 26” Hammermill • 96 reversible hammers
• Wireless remote operation
• Weight bars and indicator
FOR FURTHER INFORMATION or YOUR NEAREST DEALER TALK TO GRAHAM 0418 177045
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Optional
Hydraulic Auger Feeder
3 Endeavour Street, Warragul. Vic 3820 Ph (03) 5623 1362 www.vinrowe.com.au
What will happen in 2018 and 2019?
OBVIOUSLY, none of us know, but on the other hand, we always want to be as pre- pared as possible for what is likely to happen.
In mid-February, industry participants representing mar- keting in all states, all produc- tion systems and a variety of steps in the supply chain (pro- ducers, abattoirs and wholesal- ers) met to agree on what the group believed to be a reason- able forward estimate of supply and demand.
The group’s conclusions were that:
1. Australian pork supply is likely to grow in the 0-2 per- cent range between July 2018 and June 2019.
2. Australian pork demand is likely to grow in the 6-8 per- cent range between July 2018 and June 2019.
3. Where demand grows faster than supply, some price firming should occur in that period.
In terms of supply and de- mand balance, we need to make some assumptions to be able to do this.
The supply assumptions in- cluded:
• No more than a 1 percent increase in the breeding herd;
• No further increase in aver- age carcass weight; and
• Productivity gains that ap- pear widespread in the vicinity of 8 percent will be offset by reducing on-farm stocks and a small number of anecdotal decisions to leave the industry.
The demand assumptions in- cluded:
• Continued volume sales growth in ‘at-home’ cooked pork in the 6-8 percent range;
• Accelerating volume sales growth in ‘out-of-home’ cooked pork in the 6-8 percent range;
• Stable sales for ham, bacon and salami; and
•Continued volume growth in international pork sales in the 6-8 percent range.
We hope it goes without say- ing that we will continue to make investment decisions of producers’ levies based on ac- tivities that we have evidence will build sales as quickly as possible.
Marketing Matters
Our goal for the coming year is to get demand growing fast enough to overtake sup- ply growth, as in the situation we enjoyed in the 2014-2016 period.
Another thing that will change this year is country of origin labelling, which is man- datory from July 1, 2018.
This involves all pork that is not produced inside the retail outlet being legally required to state where it was packed (us- ing the green triangle with the gold kangaroo below).
All food products will also need to show what portion of the contents are Australian, using the bar device pictured (the one pictured is all gold or ‘full’, which means 100 percent Australian).
Ham and bacon made from imported pork will carry the triangle but the bar will be primarily white (there will be some gold on it as the water in ham and bacon brining is Australian water).
There are two points to make here.
First, the larger supply chains report they have plans well advanced and all believe they will be compliant by June this year.
However, we realise some producers sell at farmers’ mar- kets and similar locations.
Any producer who also sells their own value-added prod- ucts at farmers’ markets or oth- er direct-to-consumer outlets may need to comply with the new labelling requirements.
If you think this may ap- ply to you, please contact me at peter.haydon@australian- pork.com.au, julia.unwin@aus tralianpork.com.au or tenita. campton@australianpork.com. au and we will be happy to facilitate getting you the help you need.
There is a website with infor- mation for both consumers and food manufacturers here too – foodlabels.industry.gov.au
Second, it is important to note that country of origin labelling is less important to consumers, particularly in cities, than we all would like it to be.
We are planning a public re- lations campaign in the July to September period in order to encourage pork products to display both the government’s CoOL and the Australian pork logo with a message along the lines of ‘this means Australian made and Australian grown’.
by PETER HAYDON General Manager Marketing
Novel pork proposals make for good reading
NOVEL means of moni- toring and improving pig health and reproduction, al- leviating summer infertility and enhancing genetic pro- gress across the Australian pig herd, were just some of the subjects covered in quality research proposals submitted to Australasian Pork Research Institute Limited.
APRIL’s first call for re- search proposals to enhance the competitiveness and sus- tainability of the Australa- sian pork industry attracted 40 submissions.
APRIL, which replaces the Cooperative Research Centre for High Integrity Australian Pork (Pork CRC), is fully member based with an initial investment in 2018-2019 ap-
proaching $3 million and is actively seeking new science and creative new ideas.
Pork CRC CEO Roger Campbell said at first read- ing the submissions looked promising, with some poten- tial game-changers, includ- ing from overseas scientists.
“APRIL is seeking inno- vative research proposals that can really drive positive change for Australia’s pork industry, which contributes $5 billion a year to Austral- ia’s economy and employs 36,000 people,” Dr Camp- bell said.
APRIL’s strategic plan for research is about making the Australasian pork industry more resilient and sustain- able by markedly reducing cost of production through
enhanced productivity and differentiation in specific areas.
The target cost of pro- duction is $2.22/kg carcass weight.
The current COP, with feed at $370/tonne, varies from $2.60-$2.80/kg carcass weight.
APRIL’s three programs cover resilience, cost and re- turn on assets.
Intending to commission research by the middle of 2018, basically one year be- fore the close of Pork CRC operations, APRIL projects should ensure continuity of the current level of research and support opportunities for relevant research during the wind-down.
www.porkcrc.com.au
Page 6 – Australian Pork Newspaper, March 2018
www.porknews.com.au