February 15, 2007 12:00
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A GOVERNMENT inquiry has found no evidence that farmers and consumers are being ripped off by Australia's meat supply chain.
Federal Agriculture Minister Peter McGauran asked the Australian Competition and Consumer Commission (ACCC) in November to investigate prices received by farmers and those being paid by shoppers for red meat.
He was worried that farmers were receiving minimal returns for livestock while consumers were paying record high retail prices for their meat.
But the ACCC's three-month investigation found it could not reach a conclusion of anti-competitive behaviour based on short-term movements in the margin between livestock and retail prices.
Other factors like huge drought-induced increases in the cost of feed grain could have been a factor, the commission said.
“The supply of fresh meat involves a long and complex supply chain,” ACCC chairman Graeme Samuel said.
“The cost of livestock is only one component of the total cost incurred by supermarkets and other retailers in providing fresh meat to consumers and it represents a relatively small proportion of the final price of packaged meat.
“Increases in other production costs may counteract the effect of lower livestock prices. For example, high feed grain prices throughout 2006 appear to have had an impact throughout the red meat supply chain.”
Article from: AAPFont size: + -
Send this article: Print Email
A GOVERNMENT inquiry has found no evidence that farmers and consumers are being ripped off by Australia's meat supply chain.
Federal Agriculture Minister Peter McGauran asked the Australian Competition and Consumer Commission (ACCC) in November to investigate prices received by farmers and those being paid by shoppers for red meat.
He was worried that farmers were receiving minimal returns for livestock while consumers were paying record high retail prices for their meat.
But the ACCC's three-month investigation found it could not reach a conclusion of anti-competitive behaviour based on short-term movements in the margin between livestock and retail prices.
Other factors like huge drought-induced increases in the cost of feed grain could have been a factor, the commission said.
“The supply of fresh meat involves a long and complex supply chain,” ACCC chairman Graeme Samuel said.
“The cost of livestock is only one component of the total cost incurred by supermarkets and other retailers in providing fresh meat to consumers and it represents a relatively small proportion of the final price of packaged meat.
“Increases in other production costs may counteract the effect of lower livestock prices. For example, high feed grain prices throughout 2006 appear to have had an impact throughout the red meat supply chain.”