THE findings of the of the Australian Competition and Consumer Commission’s (ACCC’s) inquiry into the beef industry are vindication for those who questioned the status quo, having come down on the side of those pushing for change.
It has found there are grounds to justify the lack of trust among producers for those along the supply chain, with the ACCC acknowledging current levels of transparency as inadequate.
Developing the solutions is the next step.
The industry now has a month to respond to the watchdog’s recommendations.
Among those which are sure to create some serious debate is the recommendation to introduce a mandatory buyer register.
Throughout the duration of this inquiry, people in the industry have explained to The Land a view that mandatory price reporting along the processing chain will only go so far as to show who’s making the money at certain points on a given day.
It won’t affect the competition for cattle, nor will it lift prices or iron out the inherent boom and bust cycle.
A saleyard buyer register would, however, expose a clearer picture of how the buyers interact, as well as a clearer picture of shifts in demand.
This could be useful in growing trust between the vendors and buyers and in growing producers’ confidence in the early stages of the supply chain.
The trade-off with such a register is how it might effect the bottom line of agents and buyers – a point for consideration in the feedback.
Other recommendations are more vague. For instance, the ACCC fails to make it clear exactly whose shoulders the burden of change rests on and by when certain changes must occur.
The ACCC is clearly giving the industry a chance to make its own changes first.
Some would argue we are well past that point.
So while there has been official recognition that several problems exist, the industry is still a long way off meaningful change.
Strong resistance exists towards a number of the recommendations, so leaving it to the industry alone, where trust is already an issue, will likely stall change.
The ACCC has validated producer concerns, but these recommendations alone are too flimsy to bring about the change needed.
This is instead a warning to the industry that the direction in which it is headed means if it doesn’t improve transparency, then legislation that does so will eventually become a reality.
The status quo is clearly unfair to producers.
