MLA Shortfall to Trickle Down on Retailers

AUSTRALIA - Recent forecasts have suggested that Meat and Livestock Australia are due a levy income shortfall of 13 million Australian dollars, but Australian Beef Association Chairman Brad Bellinger was quick to voice beliefs that the shortfall will have little effect on producer returns and sale-yard prices.
calendar icon 20 March 2008
clock icon 1 minute read

There is no evidence to suggest that there is a correlation between the amount of levies paid, to the price we receive for our cattle, he said.

"Producers actually received a higher price for our cattle during 2004, when we were subject to $3.50 a head levy than we are now, with a $5 a head levy.

"Our levy money is being used to fund an irrelevant bureaucracy that has little flow on affect to producers. If anyone has benefited from producer levy income, it is the retail sector particularly the big supermarkets that have cashed in charging higher prices for red meat to the consumers.

"The supposed pull through effect that retailers will pay more for cattle, if they receive more at retail is basically non existent and it is naive for the MLA Board to believe that this could be the case.

It is time for the Federal Government to provide evidence that levy's are having a positive impact on prices received by farmers to justify them being continued," Mr Bellinger said.

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