MORE than 200 producers gathered at Barnawartha on Monday 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 for an inquiry into a boycott by 10 regular buyers who failed to attend or bid at the first prime cattle sale at the new Northern Victoria Livestock Exchange two weeks ago.
The crowd's support was unanimous in voting for an inquiry into the situation and also raised concerns about market consolidation and post-sale weighing.
While producers petitioned for federal Treasurer Joe Hockey to hold off on approving the JBS takeover of Primo, he gave his approval to the controversial sale on Wednesday night.
"We're all here today because we're hurting, and we're sick of seeing farmgate prices getting chewed up by the ever decreasing number of processors," said NSW Farmers Cattle Committee chairman Derek Schoen.
He said the ACCC in its approval of the JBS bid had failed to see the impact on the industry as whole.
"We're quickly heading down the path of a duopoly in the meat processing industry and that is a dangerous situation for Australia to have," he said.
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."
Mr Kennedy proposed buyers should be licensed to buy for a limited number of processors to "put more competition back on the rail".
Mr Schoen said it was common for two buyers at any given market to be contracted for up to six abattoirs, which restricts competition.
He feared if the saleyard system continued to be "prostituted by the processors", more people would pull out of the yard system and it would become less reliable as a price reference point.
He also suspected such behaviour was limiting the flow of high global beef prices back to Australian producers.
"It just seems ridiculous there is a shortage of animal protein in the world and we seem to be getting the world's lowest price here.
"It's the overall trend that is worrying, that (prices are) not keeping up with the cost of production.
"We want the FIRB (Foreign Investment Review Board) to put a hold on the approval of the JBS Primo takeover until there's been a full investigation of the consolidation of the meat processing industry in Australia."
Simone Norrie
Journalist for The Land at Wagga Wagga.
Journalist for The Land at Wagga Wagga.
