PIRSA works closely with the South Australian pork industry to overcome any factors limiting the industry reaching its producing and processing potential. This includes liaising with other government departments on issues such as infrastructure, transport, workforce development, environmental regulations, local government and planning requirements, and water and electricity supplies. PIRSA is also working to strengthen relationships between value chain members including producers, processors and retailers.
Pig producers expand into manufacturingTwenty years ago a group of South Australian and Victorian pig producers established Auspork because they wanted more control over marketing their product.
"Auspork works as the marketing arm for its pork suppliers," says Chief Executive Officer (CEO) Peter Hardy.
For the first 15 years the company operated as a traditional processor selling their product as wholesale cuts and carcases. Five years ago the decision was made to expand into value added pork products.
Peter Hardy was brought in as CEO of Auspork in 2005 with the objective of moving Auspork up the value add chain.
"I had a background in the fast moving consumer goods industry and the company was keen to become a value add pork manufacturer," said Mr Hardy.
The company closed its abattoir in Daylesford, Victoria and invested in the Big River Pork Abattoir in Murray Bridge where they now process 4000 pigs a week. Being able to set the price for their products six to twelve months in advance allows Auspork to offer a more reliable, competitive price to suppliers.
"We have an excellent relationship with our suppliers as many are shareholders in Auspork and share the business’s vision. Sixty percent of our pigs come from South Australia with Australian Pork Farms being our single largest supplier."
Auspork launched its Pork Sensations brand in 2006.
"The aim is to deliver innovative pork products of high quality to independent supermarkets, at a price that allows them to compete with the major supermarket retailers."
Auspork sells products to over 300 independent supermarkets in South Australia, Victoria, New South Wales and Tasmania.
"Marinated stir fry strips, premium sausages, rissoles and schnitzels are part of the Pork Sensations range. On top of these we also supply traditional pork cuts."
The innovation extends to the packaging, with Auspork using modified atmosphere packaging (MAP).
"The MAP technology extends the shelf life of the product to up to three weeks and provides benefits for transporting and displaying the product in-store. We call our customers at least once a week and have a very close relationship with them. They are now demanding a bigger range of products, especially our country customers who would like to consolidate their suppliers, so we are adding beef and lamb products."
"The value add side of our business compared to the traditional wholesaling is still small but it is growing. We are emerging as a market leader and at the end of the day the real benefit goes back to our shareholder and suppliers."
In the 1990s a group of small producers decided to pool their resources to purchase two large pig farms - with the foresight that a larger operation would bring greater efficiencies. This has indeed been the case with the group expanding to have 16,000 sows across 20 owned and agisted farms in South Australia. It’s been a tough couple of years for pig producers and while no one is prepared to predict the future, it is looking brighter.
"The industry’s had two years of losses due to extreme competition from a huge escalation in imported meat for processing, and the drought escalating grain prices," explains Rod Hamann, CEO Australian Pork Farms.
The industry lost 20 percent of its production capacity as producers were losing $40 - $50 head, and many did not survive.
"But in the last six months we have experienced historically high pig prices due to a shortage of fresh pork supply versus demand."
"The higher pig prices mean we can increase the investment in our business – technology, infrastructure and human resources – to ensure it is running as efficiently as possible. While times have been tough, as an industry we have been working hard to provide the best possible product to consumers."
"We adhere to the new Model Codes of Practice for Pig Welfare and our farms are part of the Australian Pork Industry Quality Program to ensure our food safety is second to none."
"The Pig Pass National Vendor Declaration system coupled with Big River Pork’s in-factory carcass identification system allows animals to be followed from the farm to wholesale and traced back if necessary."
"Pigs are individually identified at the abattoir so we can use the grading feedback to accurately assess adherence to our supply specifications. The feedback includes information about the carcass weight and fat distribution as well as quality issues and health status."
Contact
Rod Hamann
Australian Pork Farms
p +61 8 8370 1801
e rod@austporkfarms.com.au