July 16, 2008

 

Australian cattle farmer number drops as industry inaction persist

 
 

The number of Australian cattle farmers has dropped 15 percent compared to the same time last year while industry associations charged with protecting their interests remain seemingly immobilized, according to the Australian Beef Association (ABA).

 

A recent survey of 8,000 cattle farmers by the Australian Institute of Family Studies, the Australian National University, and La Trobe University has indicated serious financial problems faced by Australia's cattle farmers. 

 

Bellinger says that since then the problems have soared, as the all time record farm debt explodes.

 

Bellinger said the obscene supermarket mark-up on beef was forcing cattle breeders out of business, whilst adding to consumer woes through higher supermarket prices.

 

Noting that two of Australia's biggest supermarkets control more than 50 percent of local beef sales, the ABA has called for Anti Trust laws introduced as in USA and a full Judicial Inquiry into the meat industry.

 

Meanwhile, Bellinger has accused both Meat and Livestock Australia and Cattle Council of Australia of having gone "Missing in Action" after both organisations, which aimed to promote the interests of cattle producers, failed to make submissions to the Australian Competition and Consumer Commission (ACCC) inquiry on the market situation.
 
Meat and Livestock Australia (MLA) and Cattle Council of Australia are apparently both happy with the unsustainable and currently record low prices, that the producers (who fund them) receive, Bellinger said, He added that their inaction proves that these organisations were of more use to supermarkets than cattle farmers.  

 
MLA annually justifies its compulsory promotion levy on producers with claims that its work has increased the price of beef, whereas ABA's contributions were voluntary, he added.
 
Meanwhile, ABA has made a number of submissions to the ACCC including a detailed analysis that showed supermarkets mark-up more than 100 percent.
 
It has also presented evidence to the ACCC that showed US beef producer receive 20-30 percent more for the cattle than their Australian counterparts, while US consumers pay about half as much for beef in the supermarket.

 

Similarly, Australian beef sold in Japan are the same price they were in Australia, despite a 38-percent tax on imports.

 
Bellinger said producers are three time losers; getting less for their cattle than they were five years ago, paying the highest mandatory regulatory costs in the world and paying too much for beef in the supermarket.
 

Bellinger said he would be bringing the matter up to Tony Burke, Minister for Agriculture, Fisheries and Forestry. 

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