THE Australian Competition and Consumer Commission has concerns about buyer actions at the NVLX Wodonga saleyards but will not pursue legal action over the “Barnawartha boycott” in February.
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But it did put buyers who operate at the yards on notice that the sector was under scrutiny, from the ACCC’s new Agricultural Enforcement and Engagement Unit.
“The Australian Competition and Consumer Commission has identified some competition concerns in its investigation into allegations that nine meat processors collectively boycotted the prime cattle sale at the Barnawartha saleyard on 17 February,” ACCC chairman Rod Sims said.
“However, the evidence obtained by the ACCC did not demonstrate that the processors had reached an agreement not to attend the sale.
“This investigation has reinforced a number of concerns we have regarding conduct in the red meat sector.”
Wangaratta VFF, which played a key role in pushing for a Senate Inquiry into the sector, hoped the finding would lead to change.
“This is clearly going to give the senators some food for thought on this matter,” Wangaratta branch president Greg Mirabella said.
“Let's not beat around the bush, the ACCC made it clear there's issues.”
Victorian senator Bridget McKenzie said she would call processors back to the inquiry, based on the ACCC’s announcement.
"The fact that Mr Sims had to use compulsory information gathering powers to get these individuals and organisations to talk speaks to the fact that, for them, there's something to hide,” Senator McKenzie said.
NVLX operator Regional Infrastructure managing director Garry Edwards, was pleased the ACCC investigation had concluded.
“What everybody involved in this debate need to remember is that the greatest influence on price remains supply against strong domestic and export demand,” he said.
“The very basis of Australia's free market means that there are no controls on supply, creating an environment where prices will move up and down in response to the available supply production.”
Mr Sims said a number of processors had legitimate reasons for their non-attendance, but it also confirmed some of the competing nine processors had communicated with each other on a regular basis.
“There is a fine line between social discussions about industry issues on the one hand, and exchanging information in circumstances that may constitute an understanding between competitors on the other,” he said.
The ACCC’s Agricultural Enforcement and Engagement Unit will next year review practices in the red meat industry that raise competition or fair trading concerns.
It has the information collected during the Barnawartha investigation.
Trevor Parker, who headed the Albury-Wodonga Stock Agents Association when the boycott unfolded, said regulating the “supply and demand” driven market was entering “dangerous territory”.
