WA’s desperate pig farmers could face the devastating prospect of shooting and disposing of perfectly healthy pigs, because of a crisis over low pork prices caused by a global oversupply.

Several WA smaller farmers meanwhile are going out of business as pork prices plunge to multi-year lows.

In the short term, WA has an annual production surplus of about 6000 tonnes of pork, equal to about 1500 pigs a week.

WA Pork Producers Association president Dawson Bradford said pigs were averaging about $2.90/kg, whereas production costs ranged from between about $2.60 and $3/kg, depending on the producer.

Rising grain prices will put further pressure on costs.

The oversupply has prompted the Craig Mostyn Group, owner of Linley Valley Pork, WA’s biggest pig processor, to ask its non-contracted suppliers to supply about about 10 per cent less, because it would not be able to continue processing at current volumes.

Linley Valley has told the producers that effective from August, the group will buy fewer pigs from non-contracted producers.

Craig Mostyn Group chief executive Pat Walsh said Linley Valley would honour all contracts, and had been doing its best to take in increased volumes, by putting on extra shifts and paying staff overtime.

“We have done all we can to support the industry,” Mr Walsh said.

“We’re processing about 16,000 pigs a week, whereas our demand is closer to 14,000. Our cold stores are filled with pork. They’re overflowing.”

He said CMG, which also operated its own pig farms, had taken the lead by reducing its own production by more than 10 per cent in its bid to reduce the State’s supply.

Mr Bradford, who runs a 1300 sow farm near Narrogin, said the industry needed to contract in size, find new markets, or a combination of both.

He said the oversupply problem was global, as production had increased on the back of several good years of pricing, along with productivity gains.

In the WA market, local producers were competing with Eastern States pork farmers who faced similar pressures.

WA’s traditional export market of Singapore had added competition from these producers, eager to find a home for their pigs, Mr Bradford said.

He said Australia was eyeing exports to China, but protocols needed to beput into place. Producer-owned Australian Pork Limited has been working on entering this market.

Mr Bradford said if local consumers ate more pork — one of the cheapest sources of protein — that could also resolve the oversupply situation.

Last month, Westpork revealed it had shelved plans for a $21 million piggery at Dandaragan, north of Perth, because of the tough conditions in the industry.

The piggery, which is expected to provide about 50 jobs, will be reactivated when the industry supply balance is resolved.