On Monday the over-the-hooks bacon indicator increased five cents a kilogram (carcase weight) to average 324c/kg, while the pork indicator was firm at 349c/kg.

Pork prices are 80c/kg higher than at the same time last year, while bacon is up 85c/kg.

Prices started the upward trend in May and since then have risen between 25 and 30 per cent.

Prices for pigs have not been this high since October 2001 when pork reached 341c/kg and bacon reached 320c/kg.

National Livestock Reporting Service (NLRS) market analyst, Sophie Kennedy, said there were indications prices would continue to improve as demand from the domestic market remained strong due to tight supply.

“As Christmas orders intensify, particularly for legs in the coming weeks, this should keep prices at high levels,” Miss Kennedy said.

“As pork and bacon prices rise and become on par with beef and lamb, there will become a point where retailers may not be able to keep increasing the retail price.”

She said this could have a negative impact on rates.

William Inglis and Son livestock manager, Steven Nutt, Camden, said pig prices had risen 60c/kg to 80c/kg in the past eight to 10 weeks.

“They have been gradually improving, for example, bacon pigs that were making 230c/kg to 250c/kg are now selling for more than 300c/kg,” Mr Nutt said.

He said the major factor affecting price increases was that a lot of piggeries had closed.

“Lack of numbers has meant we are working in a supply and demand market.”

He said from now until Christmas prices could move 30c/kg to 50c/kg higher.