Evaluating the Export Growth Strategy of the Australian Pork Industry
Small size, dependence on domestic feed-grain and the generic nature of pork would suggest poor export prospects for Australia’s pig and pigmeat industries against leading export countries in North America and Europe. The federal government challenged the industry to do just that when it began opening the domestic pigmeat market to imports in 1990. The 1998 pig industry crisis converted industry and government from protagonists to partners in a concerted export growth strategy. The Federal Government commenced a $24 million Business Grants Program for the Pork Industry, including processing investment incentive grants and assistance to improve competitiveness through alliance formation. Industry formed an Export Marketing Group (EMG), transformed in April, 1999, into a processor alliance, the Confederation of Australian Pork Exporters (CAPE). CAPE quickly defined the industry’s export marketing target to achieve 20 percent of farmed pigmeat production as exports by 2002. After very slow export progress until the late-nineties, ‘lucky breaks’ arising from pig industry disease outbreaks in Asia have led to better export opportunity in Japan and a trade alliance for pork exports to Singapore. From minimal in 1998, Australia now supplies more than 50 percent of Singapore’s fresh pork requirement with Airpork, airfreighted, chilled pork. The paper: Outlines the growth of pork imports and exports in the transition from protected domestic industry to open market, with government assisted restructuring; Presents a value chain analysis of the Australian pork industry, explaining the apparent anomaly of simultaneous growth in pork exports and imports where domestic aggregate pork production and consumption are approximately equal; Provides an explanation for the deviation between assessment of poor prospects and actual export performance. A qualitative evaluation of the growth prospects for pork exports from Australia in both the short-term and the longer-term is presented with consideration of key strengths, including Australia’s favourable environment for minimal-disease pig farming, product differentiation and freight logistics, weaknesses in small size and domestic feed-grain dependence and threats from imports. Recent spectacular pork export success fits comfortably with modern trade theory, where factor endowment, economies of scale and product differentiation are all relevant to explaining intra-industry trade and the development of niche markets.
|Date of creation:||Jan 2001|
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Berkum, Siemen & van Meijl, Hans, 2000. "The application of trade and growth theories to agriculture: a survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.
When requesting a correction, please mention this item's handle: RePEc:ags:aare01:125875. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.