RESEARCH to benchmark Australia's meat processing and post-farmgate costs against the nation's major competitors is being considered by Meat & Livestock Australia, to ensure nation's meat production remains globally competitive.
Coleraine beef producer John Wyld launched the idea in front of 420 meat producers and industry people during the recent Meat & Livestock Australia Meat Profit Day at Hamilton, which he said had not been investigated for more than 20 years.
"Otherwise we are all going to be out of business, regardless of all the work you and we do," he said.
"We just can't survive on the current level of returns. We have allowed the cost structure to blow-out so we are not globally competitive.
"We are due for another round of research to show why we have to pay so much beyond the farmgate in Australia, compared with our competitors in Brazil and the US.
Mr Wyld said Australian meat producers were being squeezed with the carbon taxes, fuel prices, regulatory burdens, freight, fertiliser and high cost of delivering, more than other countries cost of production.
"It's not all about processing, although our processing cost is three times as high as Brazil's, and 2.5 times the cost in the US," he said.
"I think what we have to try to identify where costs can be stripped out."
Mr Wyld said the research could be used as the background to government policy and to seek necessary research into relevant industry efficiencies.
The last research of its kind was International Comparisons in The Meat Processing Industry undertaken by Booz-Allen & Hamilton.
MLA's global marketing general manager Michael Edmonds supported the research that would benchmark Australia's cost of production and said he would take the proposal to headquarters.
"There is scope if it is required to do this work provided it is prioritised as a high priority," Mr Edmonds said.
"We'd seek to discuss it with various peak councils to see what level of support there is for it.
"There needs to be strong support from the peak councils and other industry bodies to do the work again and it would then need to be prioritised along with other initiatives and a decision made."
Mr Edmonds said Booz-Allen & Hamilton's research was a "large piece of work and investment" and would require support and financial backing of several peak councils, including the Australian Meat Processor Corporation, Sheepmeat and Cattle Councils of Australia.
"I am not sure which organisation should lead this (research), it may be MLA or an organisation like AMPC - it will be investigated as to who is best resourced to complete the research," Mr Edmonds said.