New Study to Examine Consolidation in Australian Meat Processing Sector
AUSTRALIA - The announcement by the Australian Competition and Consumer Commission that it will commence a market study into the cattle and beef industry in Australia has been welcomed by the Cattle Council of Australia.
6 April 2016
1 minute read
Cattle Council of Australia president Howard Smith said Beef producers are becoming increasingly concerned about consolidation in the processing sector.
Mr Smith said: “The new Agricultural division of ACCC has been set up to ensure markets are working properly so it will be good to get an independent assessment of the health of the Australian beef market.
“The Australian beef industry believes that market forces should be allowed to occur as this is integral to the commercial realities of doing business, so we welcome any independent review of the market to ensure it is operating freely,” he said.
In Cattle Council’s submission to the Senate inquiry into the effect of market consolidation on the red meat processing sector it recommended that:
- Incentives were needed for new processor entrants;
- The Cattle Council led reforms to the beef industry language would help provide trust and transparency in the supply chain;
- The industry needed to improve supply chain collaboration between processors and producers to reduce peaks and troughs in supply and demand; and
- Strengthening of competition law frameworks including introducing a voluntary industry code of conduct would be beneficial.
The organisation will provide written and oral submissions to the ACCC and welcomes any producer to contact Cattle Council directly if they would like to provide confidential information to assist Cattle Council’s submission.
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