1. Cooperative Research Centre for an Internationally Competitive Pork Industry AUSTRALIAN PERSPECTIVE Brian Luxford General Manager Technical Services - QAF

2. Issues Affecting Industry Imports Carcase Weights Exchange Rates Animal Welfare Labour Market Seasonal Variation Health and Quarantine

3. Imports PRIME PRICE HSCW – NATIONAL PIG MARKET

4. Carcase Weights There are 3 current markets: 1.Retail which is 50 to 70 kg HSCW; 2.Manufacturing which is 70 to 90 kg HSCW; and 3.Japan export which 95+ kg HSCW.

5. Exchange Rate AUSTRALIAN PORK IMPORTS & EXPORTS VOLUME (MT)

6. Animal Welfare Sow Housing Progeny Stocking Rates Weaning Age

7. Labour Market Cost of Labour Shortage of Skilled People

8. Seasonal Variation

9. Health and Quarantine High health status Importation of genetic material

10. Cost of Production/kg carcass weight Feed Costs:$1.00 (feed conversion + diets costs) Fixed Costs:.85 (labour, medication, energy freight, repairs, depreciation)

11. Feed Costs Aim is to pay less than 1.2 cents per MJ DE Getting more out of existing raw materials Identify new materials

12. FCR Aim is to reduce MJ/kg carcase weight to 30 Currently 36 MJ/kg carcase weight Genetic improvement Environmental manipulation

13. Fixed Costs Aim is to increase pigs sold/sow/year by 10% Will require increased reproductive performance Will require increased growth rate These will need to be balanced

14. Wish List Increase average litters/sow lifetime to 4.5 Increase numbers weaned to 11 per litter Average energy cost to be 1 cent/MJ DE Wean to slaughter FCR of 1.8/kg live weight

15. Any Questions?