Australian beef council hails ‘important’ report
The CCA represents the interests of all cattle producers Down Under. Reacting to the report from the Australian Meat Processor Corporation (AMPC), published on 22 August, he said it gave a good insight from one angle of the red meat industry.
“The report commissioned by AMPC provides an important point of view from the processing sector of the beef supply chain.
“No doubt the Australian Competition and Consumer Commission (ACCC) will consider AMPC’s report along with all the submissions to the beef and cattle market study, to provide a balanced and comprehensive review of the supply chain.
“Whilst the AMPC report focuses mainly on competition in the beef industry and how it affects price, the ACCC study is also looking at transparency and efficiency in the supply chain – along with other ways to improve the supply chain for all participants.”
The report’s key findings
- Healthy competition for livestock from both processors and buyers exists
- There is no evidence of buyers abusing their power to exploit producers
- Innovation by processors helps offset financial setbacks and accelerates demand
- Regulation costs hold Australia back from being more internationally competitive
No ‘justification’
The far-reaching report from the ACCC was commissioned by Australia’s government after a 2015 senate inquiry was tasked to assess allegations of collusion in the Northern Victoria Livestock Exchange – the largest livestock market in Victoria.
Part of the ACCC study included the report commissioned by the AMPC that was welcomed by Matz. Dr Selwyn Heilbron, a senior business and economics consults, wrote the AMPC-commissioned report and concluded there was no “economic justification” for increased regulation on beef competition.
The final report from the ACCC on Australia’s red meat industry is due to be published in late November 2016.
