Cattle Council Welcomes Senate Inquiry into Red Meat Processing

Cattle Council welcome's yesterdays decision by the Senate to refer  to the Rural and Regional Affairs and Transport (RAT) References Committee an inquiry into the effect of market consolidation on the red meat processing sector.
"During the recent Senate Inquiry into the grassfed beef levy the senate heard significant evidence from beef producers about the negative effect of reduced competition on farm gate prices for beef producers" said Howard Smith, Cattle Council President.
"It is appropriate now for the Senate to investigate this evidence further under a new inquiry which has the proper terms of reference".
Cattle Council recently expressed concern to the ACCC about the JBS Swift purchase of Primo and has received strong representation from NSW Farmers and Victorian Farmers Federation who have been calling for this inquiry.
"It is pleasing that this inquiry is focused on how consolidation in the processing sector effects farm gate returns. We look forward to bringing the concerns of producers to the Senate so solutions and reforms can be implemented which will ensure all parts of the supply chain are profitable" said Mr Smith.
In addition to the issues covered by the terms of reference such as misuse of market power, buyer collusion, consolidation, regional monopolies, selling structures, and the regulatory environment Cattle Council will also raise measures to encourage new entrants and foreign investment, incentives for producer owned abattoirs and stronger checks on foreign company price transferring.
For all media inquiries please contact the Stakeholder Relations Officer Heidi Eldridge mob- 0417249506 

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