Pork barrelling down wrong path

By yielding to pressure from activists, Australian pig farmers have reduced their competitiveness

THE Australian pig industry has a problem. It is in the process of phasing out sow stalls but competing against overseas competitors that will probably continue using them indefinitely.

Sow stalls are individual pens used to house pregnant sows to prevent them from engaging in activities that lead to miscarriages, particularly fighting with other sows. Pig farms that use them tend to have higher productivity, in the form of more live piglets born per sow.

The Australian industry has come under enormous pressure from animal rights activists who insist sow stalls are not humane. Their assertions are anthropomorphic (ie. they ascribe human feelings to animals), based on emotion, and put the entire welfare emphasis on the sow with no consideration at all for the piglets that die when stalls are not used. Nonetheless, they have been quite successful.

In 2010 Coles responded to this pressure by telling pork suppliers it would not accept product from piggeries that continued to use sow stalls. The pig industry, which was already in the process of reviewing its position, then agreed to phase them out by 2017. Many producers have not waited until then.

The pig industry was operating on the assumption, as many industries do, that giving a bit of ground would prevent a worse situation from developing. The same thinking has led many companies to sign up to “roundtables” in which the World Wildlife Fund (WWF) plays good cop while Greenpeace lurks in the background as bad cop. The Forest Stewardship Council (FSC) and its certification process is another example.

Even if the activists were on the right side of a black-and-white argument, which is clearly not so, the logic of Australia making itself uncompetitive in the international pig meat market is dubious. If sow stalls are to be abolished, it probably only makes sense in the context of an international agreement in which no country gains an advantage.

But there is no international momentum for this.

British supermarkets (from which Coles has obtained its current crop of senior managers) demand their pork suppliers not use sow stalls, and Danish piggeries that supply the British market have responded, but that’s about it. There is no Europe-wide drive to stop using sow stalls and absolutely no interest in abandoning them in the US or Canada, both of which are huge pork producers and exporters.

The consequences are predictable. Pig producers in Europe and North America enjoy lower costs of production, and imported ham, bacon and other smallgoods account for around 70 per cent of the Australian market. While Australians continue to tell market researchers they prefer pork sourced from piggeries that don’t use sow stalls, their purchasing behaviour tells a different story. In the end, only price really matters.

Although Coles is buying more Australian pig products - in part because it cannot source enough non-sow-stall product from overseas - the same is not true of its competitors. By yielding to the pressure from the activists, Australian pig farmers have reduced their competitiveness.

Some will say this is all fine; at least Australia’s sows are happier, Australia is setting a good example for the rest of the world, and it’s not all about making money. Except that this route ultimately leads to poverty. It’s much the same as adopting a carbon tax when the rest of the world does not. All it achieves is to transfer jobs and profits to your international competitors.

What it also highlights is the weakness in the strategy of offering compromise. It is common for business people to believe that compromise is the best approach, because that’s usually how things are resolved when both sides are rational. But animal rights activists and other eco-fundamentalists, including WWF and Greenpeace, are different. They regard compromise as a sign of weakness and use it to present new arguments from a strengthened position. The ultimate goal of the animal rights lobby, for example, is universal veganism, not happy pigs. Making pig farmers uncompetitive is merely a step on that road.

Faced with similar types of foes, whether superficially “reasonable” or not, some organisations have abandoned the notion of compromise and simply refused to give any ground whatsoever. And on the basis that the best form of defence is attack, that has been employed too too.

A good example of this is seen in the US, where 13 states have introduced food libel laws allowing a food manufacturer or processor to sue a person or group who makes disparaging comments about their food products. In some cases these laws even place the burden of proof on the party being sued.

In 1998, television talk-show host Oprah Winfrey and one of her guests were involved in a Texas lawsuit based on a food libel law known as the False Disparagement of Perishable Food Products Act, arising from an episode of her show in which the two made disparaging comments about beef in relation to the mad cow scare. The case was ultimately unsuccessful but apparently Winfrey no longer makes public comments on the issue.

Another example is the National Rifle Association, probably America’s most successful lobby organisation. Notwithstanding massive pressure to compromise, it has steadfastly refused to give an inch. Its success, in achieving more liberal firearm laws in the face of repeated efforts to impose the opposite, suggests its strategy has worked.

The pig industry, along with most commercial operators in the agriculture sector, is continually fighting a rear-guard action against people opposed to everything it stands for.

Despite compromise being the path normal people might prefer, perhaps it is time to take a leaf out of the book of those who refuse to compromise. It might keep a few more pig farmers in business.

David Leyonhjelm

David Leyonhjelm

has worked in agribusiness for 30 years and is a Senator for NSW representing the Liberal Democrats.
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17/03/2014 5:49:53 AM

I would've thought ethically raised pork is a unique selling point and will allow producers to receive a premium for their product over cheaper imports.
17/03/2014 6:14:34 AM

Can someone ask David if he is a member of the NRA please. His conspiracy theories are getting more and more extreme. Maybe not, you might get sued for making disparaging claims.
17/03/2014 6:32:18 AM

David - I agree with most of your points here. It staggers me that we stipulate practices to domestic production, yet allow unrestricted and unregulated products into our market place without tariffs. I wasnt aware that "animal welfare" was confined to Australian shores.
17/03/2014 6:59:51 AM

So "ethically raised" pork is the tag given to pigs that can lie on, crush and suffocate their piglets? I would rather have sow stalls any day, much kinder to the piglets. Don't come back with free range as the pigs often eat other sows piglets. Sow stalls are the best way to go. Just shows how these people, with no doubt good intentions, should not become involved in something they nothing about and just run on emotions.
17/03/2014 7:00:22 AM

Great article David! My observations are those groups opposed to productive agriculture focus their attack on the sectors of agriculture that display the least resistance. The blame should be squarely layed at communication people employed by agriculture. These non-producers are far too eager to negotiate with groups trying to stop production and believe this strategy is the only one politically suitable...lets show our reasonableness to the public!! The GM case in WA is an interesting study affirming my point, when an honest producer (GM) just says no, they win whatever the judgement.
17/03/2014 7:47:50 AM

David is off the mark with this piece, 10 years ago I would have agreed, not today. The industry has not suffered productivity losses from the change to group-housing, a minor blip occurred during the transition but most systems have increased productivity. We know sow stalls have welfare issues & they become worse the longer sows are in them. It's why most sows were already group-housed from six weeks of gestation. the move has been positive for sows in many ways - including increased stockmanship. The EU has restricted use to 4 wks post-mating, the new Canadian code is 5 wks.
17/03/2014 7:55:04 AM

As an industry we are almost cost-competitive with Western-European production. Our labour & feed costs means we will never be competitive against the Americas or Eastern Europe. Our COP and competitiveness is not being held back by our transition to sow stall free housing. The reason processors by pigmeat from overseas is for a few reasons, somewhat to do with the vagaries of the Australian smallgoods market. Middle bacon comes from a certain size of pig, ham comes from a different size of pig. You can import just a middle or a ham, or you deal with disposal costs of the non-spec product.
RSPCA Australia
17/03/2014 9:33:48 AM

The Australian pig industry should be commended for voluntarily phasing out sow stalls by 2017 and investing in research and development into new farrowing techniques that will better meet the needs of the sow and her piglets. Sow stalls and farrowing crates confine the sow to an area so small she cannot even turn around. Australian consumers can support Australian pig farmers by buying Australian pork and demanding of their supermarket and butcher that all ham and bacon that is imported meet at least these same standards.
17/03/2014 10:43:20 AM

David, is right. The level playing field doesn't exist. The lunatic that brought Australian producers stall free sows have eliminated a perceived problem & created another. Consequently, sow free stalls will now cause more stress related spontaneous abortions and increasing numbers of piglets being accidently crushed and killed by their mothers. How is this possibly a positive step? As David mentioned the infiltration of Coles management by ex British supermarket executives is driving our unique industries in the wrong direction and the sooner we reject this stupidity the better.
17/03/2014 11:19:34 AM

RSPCA Australia says: - "Australian consumers can support Australian pig farmers by buying Australian pork and demanding of their supermarket and butcher that all ham and bacon that is imported meet at least these same standards." What planet are you on people ? We all saw the ‘Australian Consumer’ buying Holden & Ford cars, Ozzie tinned fruit, the flying Kangaroo, Ozzie clothing and Ozzie footwear not to mention their huge confidence in buying their own Agriculture land. Yep, you can count on the Ozzie consumer alright/sarc
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Agribuzz with David LeyonhjelmCommentary, news and analysis with agribusiness consultant David Leyonhjelm. Email David at reclaimfreedom@gmail.com


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