MEAT and Livestock Australia told the federal government inquiry into processing consolidation in the red meat sector the industry was enjoying an international boom.
Subscribe now for unlimited access.
or signup to continue reading
In the face of calls for more focus on producers at the farm gate, MLA managing director Richard Norton highlighted his organisation’s contribution to the growth of the industry.
“We accept there must be change and, with the support of industry, MLA has led to changes that include the development of the new beef language and a sheep meats language, an industry systems restructure, objective carcass measurement technologies and a value chain that is quickly moving to branded products driven by consumer demand,” Mr Norton said.
Wangaratta VFF branch president Greg Mirabella told the inquiry a workable solution to bring confidence back to producers was a priority and far more productive than trying to prove collusion in the market.
“Over the past decade farmers income form cattle, per head, has basically gone backwards and that’s not the case further down the chain,” Mr Mirabella said.
“It is clear the pricing mechanism in the cattle market in Australia is lacking integrity and is wide open to, at least the perception of, abuse.”
The Wangaratta VFF branch used the hearing to urge the MLA to divert some of the cattle levy to a marketing effort to help producers at the farm gate.
Examples could be modernising and improving the auction system and introducing and enforcing rigorous standards within the market.
“When I sell cattle and I pay my $5 a head for marketing from the grass-fed levy I wonder what that $5, the majority of which is spent on marketing, does for me?,” Mr Mirabella said.
“It doesn’t appear to be doing much for me because my sales revenue has not increased over 10 years.”
Inquiry chairman Senator Glenn Sterle said it was a travesty producers who pay the $5 per head levy didn’t have a direct say in where the money was spend.
But he did acknowledge the MLA was working to improve transparency and restore confidence.
“I’ve been very critical of MLA over the years and you can see that through the grass-fed inquiry and through Senate estimates,” Senator Sterle said.
“And I’m very quick to say Richard Norton’s taken over and he’s cleaning up, he’s got a job of cleaning up.
“The previous MLA … were terribly ‘un-transparent’. There was no transparency and they were brilliant at waffling their way through Senate estimates and not answering anything.”
