THE Victorian Farmers Federation (VFF) has called on Australia’s competition watchdog to investigate meat processors’ boycott of the Northern Victorian Livestock Exchange at Barnawartha on Tuesday.
Up to eight processors boycotted the NVLX’s sale on Tuesday, which wiped 20-30c/kg off the price of most cattle and led to a third of export-weight cattle being passed in.
Processors have made it clear the boycott was driven by their refusal to accept pre-sale weighing of cattle at the yards.
The VFF has condemned the processors’ boycott, branding it an act of outright bullying.
“It’s time these processors accounted for their actions,” VFF Livestock president Ian Feldtmann said.
“It’s extremely alarming that eight meat processors have the power to disrupt a whole market overnight, leaving producers totally exposed?”
“I’ll be writing to the Australian Competition & Consumer Commission and asking them to investigate whether processors have breached the Competition and Consumer Act.
The ACCC warns: “that Competitors who act collectively in these areas are at risk of breaching the competition provisions of the Act”.
The ACCC goes on to state: “A collective boycott occurs when a group of competitors agree not to acquire goods or services from, or not to supply goods or services to, a business with whom the group is negotiating, unless the business accepts the terms and conditions offered by the group”.
It’s appears to the VFF that the absence of buyers at Barnawartha lessened competition and prices paid to farmers.
