AT JUST $8 a bird, hot barbecue chickens are flying out the doors of Coles and Woolworths but growers say they’re getting a raw deal.
Last year shoppers could pick up a cooked chook for $11 but in January Woolworths dropped its prices to $8 a bird. Predictably, Coles went a step further and slashed their prices to $7.90.
Woolworths funded the offering and a spokesperson for Coles said it had “worked alongside” its suppliers to reduce the price.
Mangrove Mountain chicken meat farmer Anthony Luci said the dramatic price drop had diminished growers’ power to negotiate a better price for their product.
“The negotiations take place between the processors and the supermarkets and it’s all done their way,” Mr Luci said.
He said the price processors paid his family had increased by 10 cents a bird in 40 years and the supermarkets’ $8 marketing campaign hadn’t created favourable conditions for a raise.
“Coles’ slogan is ‘down, down’ and that’s what they are forcing onto the producer.”
The Land heard processors were being squeezed but one processor said the price reduction had been good for business.
“Of course there’s been contract pricing negotiations but overall it has been a win win or everybody, including growers, because volumes have increased,” said Cordina Farms chief executive John Cordina.
The industry’s biggest player, Baiada, didn’t provide comment.
Producers were frustrated with the major supermarkets prior to January’s price-cut by supermarkets.
Lorraine Wilson farms chicken meat with her husband Roger and son Greg in Kulnura. She said the push by Coles and Woolworths to promote RSPCA-approved chicken meant farmers were effectively subsidising a “marketing ploy”.
“The extra labour and inputs costs are not adequately compensated,” she said, adding the RSPCA protocols were very similar to standard protocols already in place regarding animal welfare.
Mrs Wilson said increases in throughput, as Mr Cordina said, did not necessarily translate into profitability. Many families were juggling second and third jobs to stay afloat.
“We’ve been fortunate to be able to use our superannuation – that’s not what it’s meant for but that's how we manage to pay for upgrades in lieu of profitability,” she said.
“We just want a reasonable return on the 40pc asset base and labour we provide.”
Long days and low profit margins recently forced veteran poultry producers Joe and Ted Basha to sell up.
At the time of their departure they were being paid 68 cents a bird – Ted said that figure hadn’t risen in three years even though in that time they installed an $16,000 lighting system for RSPCA approval.
“We sold with sadness but we're feeling good now.”
