Archive for high prices

The Great Meat Rip-off Much Is More Than High Fuel Costs

Agforce is right to advise consumers that they are headed for even higher costs if the fuel rebate is scrapped. Agforce on fuel costs
However, they are stuck between a rock and a hard place, aren’t they as we should be more focussed on the current rip-off by processors and retailers. Australia’s meat is purchased at the lowest cost in the developed World and sold at the highest! Click for the facts
While it’s all very well for MLA to advertise to increase consumption, I would prefer they work on removing the rip-off. It must be difficult for them though when they are representing both producers and the processors ripping them off!

What do you think?
Please leave your comment below.

Comments (1)

Is Our ‘Best Beef In The World’, Really The Worst In The World?

Do you have an opinion on MLA telling the World that MSA and its QA ‘mates’ (Cattle care, Flock care, NLIS, LPA etc) are World best practice and the rest of the World needs to get on board?
Wouldn’t you think they should be focussed on Australia’s producers getting better prices and saving on costs rather than increasing processing and retail margins?
(Surely they wouldn’t be more interested in selling licences to these programs World-wide than looking after their levy-paying producers?)


Here is a list of  the weekly World beef price table from the Irish Farmers Journal (which some regard as ‘ one of the best in the World’) Sourced from John Carter’s article Nov 08 (see below).

In Euros the dressed weight prices were as follows
UK 3.56
Italy 3.46
Netherlands 3.35
Germany 3.30
France 3.19
Uruguay 2.51
US 2.46
Brazil 1.83
Australia 1.57
Argentina on 1.32 (which is politically price-capped)

“Why, when we are paying the highest levies and using the most expensive QA and trace-back systems in the World are we getting the lowest true prices in the developed world?”- John Carter. 

John also asks, “Is our ‘Best beef in the World’, really the worst in the developed world? Must we face the fact that we produce a third world product? Is it possible that we have been led by idiots who can’t see beyond their ivory tower?”
We are certainly being rorted by our supermarket duopoly — since 2000 when we moved from three to two supermarket chains, while the sale yard price of cattle has remained static, the combined retail/wholesale margin has exploded by 56%. Both producers and consumers are being ripped off. Producers now receive 28% of the consumer dollar and falling whilst the USA, UK and NZ receive between 45% and 49%.
Click here for more on this story

This has been happening on MLA’s watch, so what is their response ? How are they directly saving producers $money and increasing our prices?

Given that MLA is supposedly working in your best interests as a producer, have the programs they have introduced (MSA, NLIS, Breed plan, Cattle Care, Flock Care, LPA etc) assisted you?

What do you think?
Please send this blog to a friend and leave your comment below.

Comments (4)

Australia’s Cattle Prices Fall As World’s Soar – Time For A Judicial Inquiry?

Without paraphrasing, I think the following call for a full judicial enquiry in to the Australian Beef Industry speaks for itself. (See it for yourself here)

ABA Chairman, Brad Bellinger said ‘US cattle prices are approaching record levels and their feeder steer is bringing over 40% more than its Australian equivalent. UK prices are at record levels and rising fast and Brazilian prices for forequarter beef have almost doubled since October’.

Australian prices have FALLEN 15% in the past year and we now have the lowest prices in the developed world. Australia is not suffering from oversupply, as we won’t go near filling the US beef quota. Brazil is shipping many times Australia’s tonnage into Russia, yet Australian cattlemen are being paid 15% less than they were a year ago.

Mr Bellinger continued, ‘We are paying almost five times the US producer levy to an unrepresentative and unaccountable MLA, plus we are paying hundreds of millions of dollars for a failed NLIS system that was meant to see us lead the world in market access and despite this, we are coming last’.

He said, ‘ABA research and our submission tendered to the ACCC Inquiry into Groceries have shown that the Australian supermarkets have by far the highest mark-up in the world, as they rort Australian consumers and producers.’

He continued, ‘I know that we live in the land of Ned Kelly and unregulated corporate price gouging is rampant but this time they have gone too far and are killing the ‘Goose that lays the Golden Egg’.

Australia is surviving on the sale of public infrastructure, the sale of businesses and our minerals; – when these run out, we will find we have destroyed our agricultural industry and end up with nothing; – similar to Nauru. Farms are up for sale Australia wide, while the MLA and the Government have failed us badly.

‘Considering the above facts, we call on Minister Burke to establish a Royal Commission into the Meat Industry,’ stated Mr Bellinger. ENDS

For more information please contact Brad Bellinger on 02 6725 4282 Mob 0401 233 421
Linda Hewitt 07 4987 6794 Mob 041 978 9211

What do you think?
Please leave your comment via the link below

Comments (3)

Does Meat Advertising By MLA Add Value To The Producer Or The Retailer?

Did you know that a bloke called David Thomasen, “…sits at the helm of a $16 billion business whose marketing successes have a positive effect on the turnover of two of Australia’s top companies, Woolworths and Coles?”  click for the article on MLA advertising. No, he’s not the CEO of the World’s largest farming conglomerate, he’s the MLA’s (Meat & Livestock Australia) advertising man! And he’s in charge of an advertising budget – a far cry from being at the ‘Helm’, wouldn’t you say! In response to his claim, not only does meat advertising have a positive effect on the turnover of these two virtual monopolists, but it also enables to them to continue to fleece Australia’s farmers! How else could farm gate prices decrease when retail prices increase?
*IF* MLA’s advertising has been so good over so many years, where’s the measurable effect on the producer’s bottom line?! Any decent marketer knows that it’s one thing to generate sales, it’s another to manage earnings and MLA needs to be brought to account for the earnings of its funding producers!)
What do you think? Please leave a comment below

Comments (2)

Is The Bush Politically Mature?

Should The Bush just vote back the people it has supported forever i.e. The Vailles, Andersons, McGaurans and Heffernans? In the cities, because there are a significant number of voters who swing between the traditional political battle of Labor and Liberal, most electioneering is spent trying to woo them.Wouldn’t it make sense then if The Bush caught on to this and made the parties treat them more seriously as well? And this would then give The Bush more respect from the cities as Bush voters could then participate more in some broader issues rather than the ones that just affect their own hip pockets. e.g. While the media loves painting The Bush as rednecks, most of us have some sensible opinions on the War in Iraq, Free tertiary education, Social payments for those in need, Health costs,  Humanitarian assistance for refugees, Inflationary pressures and interest rates, etc. By always just throwing our lot in with what seem to be issues that just affect our own lives and seemingly not voting for broader, selfless issues, we are an easy media target and an even easier target for professional organisers who move from farmers group to semi-government bodies to state or federal politics – and we all know a swag of them!  And by mindlessly supporting the same party each time despite what we may think abot their handling of major isssues, we have personally ended-up with the costly NLIS, LPA, FMD risk, HECs fees for education that used to be free, service-based health that disadvantages rural areas, etc. Perhaps if we showed a little more flexibility and more Worldy appreciation for how politics is actually run, not only might our opinions be listened to at election time but perhaps we might also achieve a bit more from whichever mob ends-up in power.

 What do you think? Please leave a comment below.

Leave a Comment

Are Horse-Flue & Foot and Mouth Disease Related?

These diseases may differ medically, but to AQIS and the Government they should be treated no differently.
We have hundreds of horses ‘down’ with this disasterous flu but still while Rome is burning Nero fiddles on. i.e. Minister McGauran has agreed to let foot and mouth disease at risk meat into Australia from the US.Isn’t this a classic case of letting the horse bolt and then trying to re-stable it?!You’d reckon McGauran et al, including AQIS, would want to learn as quickly as possible and shore-up our defences to prevent this sort of thing happening again to our precious livestock. And you’d think they’d be even more vigilant when it comes to our massive meat livestock market. We are 2nd only to Brazil in beef exports but are allowing meat at risk of foot and mouth into Australia from the US and Brazil. It will be a sad day if (when?) some exotic disease devestates our meat industry because some poilticians wanted to “Go All The Way With LBJ”!
What do you think?
(Please post a comment below).

Leave a Comment

Supermarkets To Pay Farmers More For Meat – Boswell

Hah! Not likely! Retail prices are up again but the Nat’s have found more excuses for prices not being pased through to producers!
Wouldn’t it be nice if the Nat’s Senators Boswell, Anderson, McGauran and Vaille actually stood for something in favour of their farming constituency. Instead all they seem to do is kowtow to the Libs and ‘bag’ Labor.

Labor seems to at least be interested in the fact that grocery prices are increasing. (The CPI was 1.4% this quarter alone i.e. 5.6% on an annual basis! Do your meat prices relfect this?) . It wants to investigate supermarket pricing because farmers aren’t getting such increases.

Senator Boswell however, says that, “The only way to bring prices down is to encourage more competition and independent operators in the grocery sector, and for Australian shoppers to change their habits to support them.” Fat chance, mate! He says, “… we live in a free country where people are allowed to buy what they choose from whom they choose to buy it, at a price they are prepared to pay.”
Sounds good in theory, but with our largest processor (AMH) owned by our largest competitor (Brazil) and the two largest retailers owning 70% of the market, it might be time to listen to someone who might be interested in helping us and not just propping-up the Big end of Town.
What do you think? (Please leave a comment below).

Leave a Comment

Are Gunns and Great Southern Against Farmers Gaining Carbon Credits?

Planting a tree gains a car buyer carbon offsets in the USA.
Does it follow that car companies might buy-up plantations as investments to counter-act their polluting ways? (Not that it actually decreases pollution, of course!)
If John Howard can envisage this scenario, why can’t he envisage Australia’s farmers getting in on the Carbon-trading act? Farmers are responsible for vegetation management on a scale that can only be dreamt of in cities and towns. Farm vegetation has the added and no less important effects of protecting and improving soil quality, salinity control, pasture improvement and livestock production. This would suggest that perhaps farm vegetation should be worth more to the environment than island-like plantations resulting in desert wastelands at the end of their time.
Three questions must be asked:
1. Would the large plantation groups be less valuable to this argument if farmers were included in Carbon credit schemes. i.e. Is there silent lobbying of the PM from this area?
2. Are the vegetation management efforts of Australian farmers important to Australians?
3. Are Australian farmers becoming less relevant to Conservative governments because of their diminished voting capacities?

What do you think? (Have your say below – if you think it, it’s worth writing it!)

Leave a Comment

A Producer Writes To MLA Re. Cattle ‘High’ Prices

High cattle prices? Says who?

MLA should never print the words “high cattle prices” in reference to Australian cattle prices.
Whilst cattle prices are higher than previously, they are also lower than previously and certainly not at an historical high.
On a world stage however, Australian cattle prices are low.
The EYCI sits at 339, around $1.86 per kg live
US feeder prices are around 86.5 US/lb which is A$2.53 live, US prices are 36% higher.
In Japan, B2 carcasses are at just under $11 per kg and the A5 Wagyu carcass is at just over A$23 per kg equating to $4000 per head for dairy steers and $10,000 per head for high end Wagyu.
Australian cattle prices are certainly not high on a world stage.
The 2 decades of deflation in Japan have resulted in an expectation that prices will continue to come down.
Using high to describe Australian cattle prices in print merely reinforces this expectation with beef. 

(This was sent to MLA by a producer in response to a statement in the MLA weekly publication, “Friday Weekly”).

What do you think?

(Please leave a response below)

Leave a Comment