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 Beef groups call for judicial inquiry 

Beef groups call for judicial inquiry

20 Jul, 2008 05:00 AM
Frustrated beef producers have called for a judicial inquiry into the industry as low prices and high input costs continue to put the squeeze on profits.

The Red Meat Action Group (RMAG) have aligned themselves with the Australian Beef Association (ABA) with both groups calling for a judicial inquiry into the Australian beef industry.

RMAG chairman Gary Buller said the current state of affairs, which are being exacerbated by the gas crisis, demonstrates the need for such action.

Mr Buller said he would not rule out holding a major public rally in Perth to alert consumers to the poor prices farmers are receiving while supermarket prices have not changed.

"World cattle prices continue to rise while WA producers receive prices similar to 1980s yet WA consumers are faced with paying the highest retail beef prices in the country, if not the world," Mr Buller said.

"Livestock producers are appalled that WA abattoirs have used the gas crisis to further erode farmers' dismal returns yet prices haven't reduced at retail level."

Mr Buller has also questioned a cost structure. released by Woolworths, saying they used a particular $10 cut of beef to demonstrate how little return they make on beef sales when paying the producer $3.80/kg for the product.

"If Woolworths' returns on beef sales are as low as they claim one must ask why they continue to sell beef," he said.

"Until the retail giants get their heads out of the sand and treat producers with the respect they deserve, RMAG will continue to support ABA in applying pressure on those sectors of the industry, including the large retailers, Meat and Livestock Australia (MLA) and Cattle Council, which fail to recognise the plight of the industry."

WAFarmers president Mike Norton and Pastoralists and Graziers Association (PGA) meat section president Tim D'Arcy are against the idea.

Mr Norton and Mr D'Arcy say they are both intent on securing $100,000 to fund a beef stocktake program, which they say will analyse the beef indus-try supply chain and lead to an increase in prices paid by supermarkets at the farm gate.

They say MLA has already pledged $50,000 and they are now looking to the State Gov-ernment or the Cattle Industry Compensation Fund to get another $50,000.

Mr D'Arcy said the program would be aimed at carrying out whole-of-chain research.

"It will give us the ability to look at prices of products from when they leave the farm to what consumers are paying with the aim of increasing that return to producers," Mr D'Arcy said.

Mr Norton said all the indus-try needed to work together to find solutions to the price problem.

"I do not believe a judicial inquiry is the answer," he said.

"We are still committed to working on achieving outcomes on the nine motions that were set at the crisis meeting held in Bunbury in November and that includes establishing the stocktake program.

"The Agriculture Department is already doing work similar to what we want to do through the stocktake program, but that won't be ready until later in the year, we need to get something happening now."

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I am also worried about the price paid at the farm gate and believe that if all of the producers took a stand on it and did not send cattle to the sales or meat works for an agreed period they might jerk some reality into the pricing structure and a better deal can be struck. As for agforce, MLA and the industry bodies which are supposed to assist through grower contributions, all they seem to do is jet around the world in comfort and only look after the big company producers owned by the people in the city in banking etc. If they were all people on the land they may do some thing to address the lower prices and not rely on numbers to turn a profit or a tax loss for their other interests. So I would like to suggest that there be a blanket withdrawal of livestock sales for a month and see what the out comes are.
Posted by Worried, 21/07/2008 10:09:57 AM
We are small producers in the south west of WA. We have cattle to sell but are more than willing to not send them to market. There is no profit on top of them anyway. My concern for this type of action is for the farmers that need to sell due to lack of feed. For blanket action to be taken feed would need to be given to those farmers or their cattle taken to where there is feed for the action period. I also guess that the big retailers would just source meat from the east, so all we would be doing is hurting the processors and there would be a flood of animals hitting the market after the action period that would again drive prices down. There must be good profits for the processors at present, so my recommendation is that businesses that can move into processing beef do so.
Posted by peter, 21/07/2008 1:51:52 PM
I agree that something has to be done about the poor prices we are getting as beef producers. We seem to get all the costs passed on to us and we are the ones at the start of the production chain. It irritates me to see the prices that are charged in the supermarkets knowing what the real price is we the producer get at the "farm gate". We pay a $5 per head levy to MLA and they don't seem to be doing anything about it or recognising it as a problem. We are an industry that is battling at the moment with our price remaining the same but the cost of the final product ever increasing and sadly it seems that many Australians don't care enough about this to want to make a difference.
Posted by Kylie, 21/07/2008 3:49:29 PM

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