IT appears no one was surprised by news yesterday the Australian Competition and Consumer Commission could not find evidence of buyer collusion at the Northern Victoria Livestock Exchange.
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The industry bodies have told that Inquiry countless times they have never seen collusive behaviour and if there was evidence of that it must be dealt with through the courts.
Now the ACCC findings back this up. They could not find any solid evidence of buyer collusion that would stand up in a court.
The red meat producers and the committee sitting on the Senate inquiry into the effect of market consolidation on the red meat processing industry were pleased the ACCC did agree the saleyard process needed closer scrutiny.
The formation of the ACCC’s new Agricultural Enforcement and Engagement Unit means the commission takes transparency and competition in the rural sector seriously.
Victorian Nationals senator Bridget McKenzie, who instigated the Senate Inquiry, said the Inquiry would re-convene in the New Year to hear again from the key players.
The senator said the new agriculture unit’s role suggested there was enough concern of broader issues within the red meat industry.
Only time will tell if this unit has any more teeth to effect change than the ACCC.
The underlying issue of all this was the introduction at Barnawartha of post-sale weighing of cattle.
Wodonga’s Council’s old yards at Bandiana operated a pre-sale weighing system.
This change was on the cards when Regional Infrastructure Pty Limited took on the operation and management of the new yards, which are owned by Palisade Investments.
Buyers made it clear to Regional Infrastructure they want post-sale weighing.
The ACCC investigation started after reports nine meat processors had agreed to not attend the February 17 prime cattle sale at Barnawartha in response to the saleyard using pre-weigh selling.
Producers are almost unanimous in their call for pre-sale weighing, which is more expensive for yard operators but generally delivers better prices per kilogram for producers.
Now those voices need to stay loud so that the power at saleyards is spread evenly across all stakeholders.
The Agricultural Enforcement and Engagement Unit has a lot of work still to do.
