PRODUCERS have urged caution if the Australian Competition and Consumer Commission’s beef study puts the spotlight on commission buying at saleyards.
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"I think it's got to be done very carefully and there'll probably be a limit but I don't think it's going to be one," Ovens Valley VFF secretary Loretta Carroll said.
“It has got to work for everyone and had got to be fair.
"We're just looking for equity in the system, getting a fair price.”
Launched last week and due to report in late November, the market study comes in the wake of producer angst following inquiries which cleared nine processors accused of collusion in boycotting a sale at Barnawartha.
“It became apparent there was a high level of communication between buyers operating in the market and it raised issues about the ability of independent operators to gain access to processing capacity,” ACCC agriculture commissioner Mick Keogh said.
Ms Carroll, who was among several North East beef producers who met with Victorian Nationals senator Bridget McKenzie after the study was announced last week, said it was important producers made submissions.
She said livestock markets have been suppressed for decades and transparency should help producers get a greater share of retail prices.
“In fact 40 years ago, in 1973, yearling cattle prices averaged in real terms $7.26 per kg carcase weight and since that time we have not received what I would call fair and equitable returns,” Ms Carroll said.
“Ultimately we are seeking to receive a greater share of the retail price and to do this we need greater transparency from the farm gate to the consumer and we need to cut out the many discounts we receive when selling cattle.
Ms Carroll urged farmers to take action.
“They need to write to the ACCC or contact them by phone to provide evidence or their concerns about the industry,” she said.
She said the Ovens Valley branch of the VFF would welcome feedback from producers and was open tot he idea of hosting a workshop for producers to help them prepare a submission and explain the process.
Initial submissions will be due by May 6 while public consultation forums will be held in June – including in regional areas – with exact locations and dates still to be confirmed.
Senator McKenzie said the decision to make the beef industry the ACCC’s agricultural division’s first target was vindication for North East producers who “spoke up” last year.
Cattle Council of Australia president Howard Smith said the beef industry had to be careful not to “throw the baby out with the bathwater”.
Producers use commission buyers to make store purchases where they simply don’t have the resources to get to sales, he said.
“If we start mandating to take those players out, there will simply be fewer people in the market for those pens and we’ll lose competition,” Mr Smith said.