Beef supply chain extremes under the spotlight at public meetings

However, it’s clear there is a high level of mistrust among producers and a widespread perception that processor buyers are colluding and splitting yardings.

The concept of a code of conduct for buyers operating at saleyards has been flagged, with some saying it would be the best way for the industry to come up with its own solution and others saying it would need a lot more ‘nutting out’ to be feasible.

Queensland LNP senator Barry O’Sullivan organised the meetings at Longreach, Cloncurry, Quilpie and Roma, in a bid to hash out how the best commercial outcomes for all stakeholders in the red meat supply chain can be achieved.

A good representation from all sectors made the trip, including Australian Meat Industry Council chair Lachie Hart, Australian Meat Processor Corporation chair Peter Noble, Cattle Council of Australia’s David Hill and Meat & Livestock Australia managing director Richard Norton.

With both a senate inquiry and an Australian Competition and Consumer Commission market study currently focusing on the beef supply chain, there was a real need for all stakeholders to come to the table, Senator O’Sullivan said.

Transparency of where money flows through the supply chain was a big issue.

“We understand for processors, this is their business but it’s our business to know if we are getting a fair price,” one Longreach producer told the forum.

Mr Norton outlined objective carcase measurement technologies, the first phase of which is on track to be implemented in the beef industry mid next year.

Both agents and producers provided feedback on experiences at saleyards where they believed processor buyers had gone ‘pen for pen’ or had even split pens after a sale.

Many were frustrated by the ACCC investigation into the failure of nine processor buyers to attend a sale at Barnawartha in Victoria, which found there was no evidence of collusion.

But Senator O’Sullivan said solid progress had been made. He cited the appointment of an ACCC commissioner dedicated to dealing with agricultural issues and effects test legislation. This legislation, recently passed by the Federal Government, puts the onus of proof back on the ‘large and powerful’.

However, he agreed there were still big issues with livestock marketing, particularly at saleyards.

“Where you have such variations in a marketplace, you have market failure and I’m not satisfied we have a total free market here,” he said.

Cloncurry livestock agent Peter Dowling said a vendor should not be disadvantaged by where they choose to market their cattle.

“In certain circumstances, at the moment, they are are,” he said.

Rosemary Champion, Longway Station, Longreach attended the first of the public forums.

“I’m concerned about the future of saleyards and what it will mean to the small producer if they close,” she said.

“Marketing livestock online is the way of the future – saleyards have to be very good to tempt you to go past AuctionsPlus today – but unless you have a very good line to offer it’s not an option. More interfacing between online and saleyards would be good.”

Longreach producer James Walker, Camden Park, said: “Bring on objective carcase measurement as quickly as possible.”

“Because grading is subjective at the moment, there is a disconnect between producer and processor,” he said.

“This technology will be a game changer, provided producers can access the data.”