Increase speed of Insert/Update/Delete using ActiveRecord / Rails - ruby-on-rails

Question

I'm iterating over a collection of updates (which include additions, updates and deletions). I'm currently looping out over these updates, checking to see whether it exists. If it does, updating the information. If it doesn't, creating a record.
This seems to be taking an unpleasurable amount of time. I'd say 1 every 2 seconds, maybe slightly faster. But I've got 60,000 left to process and it's going to take 109 hours (give or take) to complete. Which isn't acceptable.
Is there anyway to perform this more efficiently?
Update.all.each do |u|
product = Product.find(:all, :conditions => ["product_codes = ?", u.product_codes])
if u.update_type == "Delete"
daap = DeletedProduct.new
daap.product_codes = u.product_codes
daap.date_deleted = timestamp
daap.save
if product.count == 1
product.first.destroy
puts "Product #{ u.product_codes } deleted"
u.destroy
#delete = #delete + 1
elsif product.count > 1
product.each do |pro|
pro.destroy
puts "Product #{ u.product_codes } deleted (UPDATE #{ u.id})"
#delete = #delete + 1
end
u.destroy
else
#notfound.push(u.product_codes)
u.destroy
#delete = #delete + 1
end
elsif u.update_type == "AddOrUpdate"
if product.count == 1
p = Product.first
p.data = u.data
p.last_updated = timestamp
p.save
puts "Product Updated #{ p.product_codes }"
u.destroy
#update = #update + 1
else
p = Product.new
p.product_codes = u.product_codes
p.data = u.data
p.last_updated = timestamp
p.save
puts "Product Added #{ p.product_codes }"
u.destroy
#delete = #delete + 1
end
end
end
EDIT: It's the product lookup that takes so long. Is there anyway to speed up this part of the process? 'product = Product.find(...'