NSW Farmers welcomes the release of the interim report of the Australian Competition and Consumer Commission (ACCC) Cattle and Beef Market Study.
The interim report highlights the need for independence and transparency in the grading system, as well as better access to consistent market information in order to increase the profitability of cattle operations.
NSW Farmers’ President, Derek Schoen said the key concerns of beef producers were reflected in the findings and the industry welcomed the report.
“We’ve engaged with the ACCC on the problems with saleyard integrity, the impacts of market consolidation, and the need for increased independence and transparency in grading,” Mr Schoen said.
“This report recognises those concerns as legitimate issues and we thank the Commission for its analysis.”
The interim report recommends the introduction of a mandatory Buyer’s Register at saleyards to disclose details of commission buyers and the parties for whom those buyers are acting.
“Disclosure of commission buyers’ representation was a key recommendation of NSW Farmers’ submission and we are pleased to see that it has been picked up in this interim report.”
Mr Schoen said that the interim report also recognises producers’ concerns about objective carcass measurement and the availability of market information.
“Cattle producers need accurate information to be able to fulfill market demand. We see price deductions passed back to the farmer, but we don’t always have the information to fully understand why carcasses are discounted.
“In our submission, NSW Farmers discussed transparency and accountability of carcass grading, which is currently subjective and often inaccurate.
“Objective carcass measurement and better oversight of carcass grading will improve the integrity of the processing sector. Importantly too, it could create greater production efficiencies by giving producers market signals on how best to meet demand. I’m pleased to see this reflected in the interim report. This remains a key issue for producers and processors to drive together.
