The Australian Beef Association believes the ACCC and politicians are wrong about complexity in the meat supply chain. It says this is why politicians continue to neglect the supermarket meat issues.
In what it believes to be a first, the ABA have posted on their web site a power point presentation to give an insight into the cost of a live beast at the farm gate to meat on retail shelves.
See what you think? And leave a comment below.
The live exports ban fiasco has prompted a deeper view of MLA’s activities a la Fairfax Business Editor, Michael West’s Cook’s tour of MLA’s problems. Read more: http://www.theage.com.au/business/export-ban-has-halfmillion-herd-on-the-hoof-20110610-1fx3d.html#ixzz1Ow67V5dg
Perhaps as MLA is a corporation, ASIC will finally get involved now, even if the Federal Government keeps hiding its head in the sand over the MLA quango. Who knows, just as Al Capone was jailed for tax evasion rather than murder, MLA may be restructured or closed-down due to ineptitude rather than misappropriation of funds!
The livestock market isn’t all that difficult to understand, is it.
I’m sure we’d all be very happy if there were several buyers for our stock every time they went to market. Store animals do OK when grass is good enough to attract more competition by our colleague producers and we can’t do much about that. Unfortunately, anecdotally, when it comes to fat animals, buyer competition seems to be becoming more of a rarity with the duopsony of the two big supermarkets putting the screws on prices. However, even in this situation some times there is going to be some open buyer competition at ‘yards. Such competition doesn’t happen when stock is taken direct. So, why are producers increasingly dealing direct and allowing processors to cut their beasts up before deciding what price they will receive? Sounds more like gambling than risk management to me. Sure, ‘works’ prices can seem very good. But how much better is one works than another? And how do they really compare to the ‘yards?
Even when some producers have the luxury of comparing between 3 ‘yards and 2 processors, how can they do it without a system for comparison?
Without any livestock market transparency (past prices from a recording service based on averages can be a waste of time if you have animals at the top or lower ends!), the best I can think of is to request grids that will hold for 2-3 weeks from the various works and list stock for online auction e.g. Saleyards.com.auwith a Reserve price that would be acceptable to you. If they don’t sell, then you can always take them to the ‘yards or works and take your chances.
If works can’t guarantee prices this far out why would you take the chance of trusting them as they are price-makers and producers are price-takers? Surely growing stock for up to 3 years all at your cost and risk, you deserve better. You can take more control now.
What do you think?
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This new animation attempts to explain the inequity between Australian farmers and processors who both get to vote at MLA.
Click to view This Unique Animation On Australian Farmers Voting Pain
What do you think?
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It’s a pity Elders had to sell Rural bank to get some $dough to decrease its debt. Their shares increased a bit on the news but are still not yet 50% of what they were back in mid-April (just over 6mths ago). Does the market think that traditional agency models based on taking 5.5% of stock sales to cover salaries, offices, cars and phones, is numbered? Good agents in any marketplace can offer good value but with producers expenses being squeezed from all sides we all know that direct and paddock sales with no agents or agents on decreased fees have increased. With online marketing (and even bidding) options opening-up, who knows what will happen to agencies like Elders in the future.
What do you think?
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Apparently AACo is set to farm-out beef production for 90,000 calves.
Are you one of the ‘selected partners‘ to produce these calves for AACo using AACo genetics by 2013?
How does this work? We do know that amongst all of the PR spin on this topic, AACo’s focus is on attempting to turn-around their large net loss which means they want to save money while creating revenue. Makes sense then that they would like to outsource stock production if they can do it less expensively than growing it themselves.
I guess that some of Australia’s farmers are now really starting to realise that it is their skilled labour they are selling. It’s just that as distinct from ‘labour’ they are also accounting for their capital costs in machinery and land etc.
How do you think we will compete in this labour market that includes South American and Chinese labour costs producing the same product (albeit not an Australian grown one)?
Read more here
What do you think?
Please leave your comments below.
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