COLLUSION, collaboration, consultation and competition are four “C” words that have been bandied around, in the course of conversations about the circumstances of the first sale at the new Barnawartha saleyard in January 2015.
To refresh everyone’s memory, the first fat cattle sale in this complex, a pre-weigh sale, was left unattended by numerous processors, or their orders.
January 2015 was a very difficult time for producers, as the supply of cattle was large, to say the least.
The following thoughts are mine, for which I may be chastised, but equally I would like comment.
Having been in the industry for a long time, which included open auction sales at Newmarket, then liveweight, both pre and post weigh, I believe I am qualified to make these comments.
Competition stems purely from supply and demand.
When supply is high, and pickings are easy, competition wanes. However, as we are currently experiencing, supply is very low, and competition is extreme.
This competition stems both from processors, but equally and more important in the present time, feedlots and restockers.
So you can label the competition however you like.
So, this one incident in 2015 sparked a revolt by producers, which eventuated in a $11.4m federal government funded ACCC enquiry.
This has evolved into a much larger process than may have been intended than the original outrage.
Some eighteen months later, and there has been no outcome, and to date a lack of reporting from the ACCC.
Some producers are concerned that small producers are having too much say, and larger producers very little, which may taint the outcome.
I would suggest that many of the larger producers, specifically those sell fat cattle, rather than breeders selling in store sales, are encompassing the special programs put out by larger processors, and therefore they are selling the majority of their cattle direct.
These producers deal with a grid system, and know before they send, their price, which is based on the parameters of the grid. There are no arguments.
Maybe this is why larger producers are not as concerned as some others.
Where to from here?
As the ACCC are using our money to produce some definitive outcomes, maybe they could keep producers up to date, and better informed with their thoughts.
At least regular updates may spark more conversations and consultation from a broader perspective of the farming community.
