October 30, 2007

Australia to probe high beef prices

The Australian Competition and Consumer Commission will launch an investigation on the seemingly steep prices of beef in the market.

According to the Australian Beef Association (ABA), the indicative price paid to producers on the east coast dropped 18 percent, but prices in the supermarkets remain unchanged or have gone up.

ABA chairman Brad Bellinger says drought conditions have sent more cattle to the market, which is not being reflected.

He said retail prices for beef has increased more in Australia than any other country in the world in the last 11 years. It should have dropped substantially

Belllinger noted that beef prices should be dropping substantially, adding "it's "ridiculous when you hear comments made by the Prime Minister that due to the drought the price of food will increase".

He stressed drought and increased yarding of cattle and sheep, meat, for example, should be cheaper than ever to the consumer.