THE Senate Rural and Regional Affairs and Transport References Committee’s inquiry into competition in the red meat supply chain has recommended a transparent pricing mechanism be introduced for livestock saleyards.
The interim report was handed down yesterday in Canberra making five recommendations including extending the final reporting deadline to late December with normal processes disrupted due to the double dissolution election, July 2.
That extension will give the committee time to consider findings from the Australian Competition and Consumer Commission’s (ACCC) market study on the red meat sector that’s due to be tabled in November.
Today, the ACCC also released a list of dates and venues for regional forums to gather evidence and feedback for its market study into the cattle and beef industry.
It’s understood Committee members were at odds over whether an interim report should be released this week due to the perceived quality of its information and effectiveness of the stopgap recommendations.
But the committee’s first recommendation called for a transparent pricing mechanism to be introduced at livestock saleyards and for Meat and Livestock Australia - in cooperation with the livestock and red meat industry – to establish a national price disclosure and reporting system.
It also said industry and producers should work together to establish best practice modelling for saleyard design in cooperation with producers and their representatives.
It also said the Australian government must introduce legislation to prohibit concerted practices as soon as practicable; a view backed by the ACCC during the inquiry process based on a suggestion in the Harper competition review.
Recommendation number four called for the establishment of a registration and training system for livestock agents and oversight by a registration body which would include a formal complaints mechanism.
The final suggestion was for the Senate to extend the inquiry reporting date to December 20 this year.
ACCC Agricultural Commissioner Mick Keogh said the forums would directly from farmers and other people in the cattle and beef industry about competition and fair trading issues that concern them.
“We are in the early stages of the market study and consultation is ongoing,” he said.
“We are interested in a range of issues, for example; competition between buyers of cattle, the strength of competition among bidders at saleyards and the transparency of cattle pricing information.
“If you have any issues you wish to raise, but you are not able to attend a forum, I encourage you to call or email us and have a chat.”
The ACCC said in June and July its staff would also visit a number of regional areas where forums are not being held.
The forums will be held at:
- Wodonga, Victoria, on Tuesday, June 7
- Toowoomba, Queensland, on Friday, June 10
- Mount Gambier, South Australia, on Monday, June 20
- Dubbo, New South Wales, on Friday, June 24
- Bunbury, Western Australia, on Friday, July 1