OVER 200 producers gathered at Barnawartha today in the wake of calls for a Senate inquiry into the power of processors in the red meat industry.
The meeting was hosted by NSW Farmers and the Victorian Farmers Federation (VFF) to rally support to push for the inquiry after up to 10 buyers failed to attend or bid at the first prime cattle sale at the new Northern Victoria Livestock Exchange two weeks ago.
The crowd was unanimous in voting for a Senate inquiry in to market consolidation and in rejecting post-sale weighing at the saleyards.
Producers also petitioned for federal Treasurer Joe Hockey to hold off on approving the JBS takeover of Primo.
Bigga farmer Shane Kennedy, “Bellhaven”, travelled five hours to attend the meeting.
“I believe our industry is not on its knees, it’s on its belly,” he said.
“Our processing sector is getting closed down so they [processors] can manipulate the market.”
“One of the biggest problems we have is the way we allow our saleyards to be conducted.”
Mr Kennedy proposed buyers should be licensed to buy for a limited number of processors.
“Put more competition back on the rail,” he said.
Victorian producer Laurie Horne, “Innisfail”, Molyullah, said he was “appalled” events of the past fortnight.
“I’ll not have another beast go to Barnawartha,” he said.
“The big firms just start to throw their weight around; I’m offended by people who tell me what to do with my stock.”
“These people just want to buy our livestock cheap.”
Frustrated producers fired shots at agents who operate at the Barnawartha facility and the immediate decision to switch to a post-sale weighing system following buyers not showing up.
“It was a reaction to an ultimatum,” said president of the Albury Wodonga Stock Agents Association, Trevor Parker.
Mr Parker then read out a timeline to the crowd noting the days leading up to the alleged boycott.
He said buyers had confirmed via a phone call on the Friday before the prime cattle sale they would not be active in the market if it was still going ahead as a pre-weigh sale.
He said agents called an urgent meeting on the Friday at 5pm and rang around other buyers to see if they would attend.
“Some categorically said they wouldn’t [be in attendance], others were non-committal,” Mr Parker said.
Mr Parker said at no time did any of the agents expect up to 10 processors to not be active.
“The 10 buyers that did not participate on that Tuesday over the last 12 months have bought 43 per cent of the fat cattle through the Wodonga yards,” he said.
He confirmed the decision was made by the saleyards advisory committee which was made up of representatives for vendors, agents, transporters and buyers.
“The decision was not made lightly and it wasn’t made by one person,” he said.
Line in the sand: VFF
VFF livestock president Ian Feldtmann said speaker after speaker rose to condemn the processing sector and its growing power and the widening gap between rising retail prices and the flat returns faced by farmers.
“We need to draw a line in the sand and stop processors from dragging the last cent of profit out of farmers’ pocket,” he said.
In regards to pre- and post-weigh selling, Benalla farmer Laurie Horne suggested to the crowd that change of ownership was at the fall of the hammer, and therefore producers should not be responsible for weigh fees.
But Wodonga Stock Agents Association president Trevor Parker said the new saleyard regulations stated that change of ownership on a pre-weigh sale is at the fall of a hammer, while post-weigh selling was at the point of weighing.
Producers also raised the impact of curfew times.
Under the system at Barnawartha, the curfew for cattle to be in the yards is 9pm.
If post-weigh selling continues and the sale does not start until 10.30am, many cattle are not weighed for 13.5 hours – or more, which disadvantaged producers because their stock would lose condition.
Other people said the post-weigh system took the power away from farmers, because they did not know what they would be paid until after the sale was completed.
- More to come.