16 May 2008

2 minute read

Oceania

The ACCC Inquiry into grocery pricing and the Senate Rural and Regional Affairs and Transport Committee investigation into meat marketing, are the two most important Inquiries into the meat industry, in more than a decade.

ABA say that the MLA and CCA have failed to present any submissions to the ACCC and CCA has advised the Senate Committee that it will not be making a submission on behalf of beef producers.

ABA has made a number of submissions to the ACCC including a detailed analysis that showed supermarkets mark-up mince more than 100%. They have a long submission with the Senate Committee.

Meat and Livestock Australia and Cattle Council of Australia are apparently both happy with the unsustainable and currently record low prices, that the producers (who fund them) receive.

Mr Bellinger said, The United Kingdom Meat and Livestock Commission had given strong evidence at the recent UK Competition Commission's Inquiry into grocery prices. This has resulted in the appointment of an ombudsman to monitor UK's four major supermarkets.

Australia has two major supermarkets that between them control 50% of retail beef sales and as much as 80% of grocery sales.

ABA presented evidence to the ACCC that showed US beef producer receive 20-30% more for the cattle, while US consumers pay about half as much for beef in the supermarket.

A scan of supermarket shelves in Japan shows Australian beef can be bought there for similar prices as in Australia, despite the 38% tariff on imports. He said that both Cattle Council and Meat and Livestock Australia are funded from compulsory producer levy money, whilst ABA relies solely on its own members' voluntary money.

He continued, 'Producers are three time losers. They are getting less for their cattle than they were five years ago, they are paying the highest mandatory regulatory costs in the world and along with all consumers they are paying too much for beef in the supermarket.

'MLA annually justifies its promotion levy on producers with claims that its work has increased the price of beef. It is now obvious that they are of more use to supermarkets than producers. Perhaps this is why both Cattle Council and MLA have made no submissions to either Inquiry,' Mr Bellinger said.

Brad Bellinger said, 'If the Missing Persons Bureau can't find them, we call on the Minister for Agriculture, Mr Tony Burke (who is responsible for the annual $96 million levy on producers) to find the missing bodies. Unless he can find them, he should not continue to fund them, and if he is successful at tracking them down, he should issue them with a 'please explain.'

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