AS many of your readers will know the ACCC has just brought down its findings on grocery pricing, which includes meat.
Clearly the findings are contrary to what most red meat producers and consumers know - that there is a massive difference in prices from the farm gate to the retail shelves.
The ACCC claims that the meat chain is very complex, but to my way of thinking, the meat chain is as simple or complex as one would like to make it.
Perhaps the ACCC should have taken some simple proactive steps during this inquiry, which may prove that the information provided by the supermarkets may not be correct in some cases.
Perhaps the ACCC investigators could get out of their suits and air-conditioned offices and follow a beast from the paddock to the slaughter floor through to the retail shelves.
A good starting point would be to talk to the producers and find the prices paid to those producers over the last two or three years by Coles and Woolworths.
The investigator needs to take into account the costs after the beast hits the slaughter house floor, to kill, bone, slice, package and retail, but then subtract the prices received for offal, hides, bones etc., then add together the various prices of all the different cuts of meat from that beast.
This way we can get an independent final value of the carcass - it can’t be that difficult.
Surely this sort of approach we would get a pretty accurate figure.
Then the so called profits of 3 – 15 per cent claimed by the supermarkets may be seen for what they are - ridiculous.
Ask producers if they have been compensated for grain prices.
Evidence given to the ACCC suggests that grain prices nearly doubled in 2006.
Have producers been compensated for the increase in fuel or fertiliser prices, I think not.
The investigator needs to get clarification to the claim from Woolworths that they only buy British Bred steers, as they maintain in their press release.
If this is the case, what do they do with the non-British bred and heifers that they buy?
Complicated I think not, if the ACCC listened they may even find a smoking gun.
Surely it is time for Minister Burke, Federal Minister for Agriculture, to listen to what farmers and consumers are saying and start listening to the other side of the story or is this just too hard?
David Byard - Australian Beef Association