❓ An inquiry into the discrepancy between WA and eastern states beef prices, focusing on bull prices and market dynamics. The Minister acknowledges the price difference, citing market size, imports, abattoir limitations, and commercial difficulties, while rejecting government intervention in abattoir ownership.
AnsweredQoN 1074Legislative Council
QuestionView source ↗
BEEF PRICES - FARM WEEKLY REPORT
I refer to a report on page 14 of last Thursday’s edition of Farm Weekly stating that even though the eastern seaboard is in the grip of one of its worst droughts and even with cattle flooding the market, farmers are getting at least three times more per kilogram for their beef than WA beef farmers, and I ask - (1) Will a ministerial or departmental representative be attending the beef producer forum in Bunbury today; and, if not why not? (2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE
I refer to a report on page 14 of last Thursday’s edition of Farm Weekly stating that even though the eastern seaboard is in the grip of one of its worst droughts and even with cattle flooding the market, farmers are getting at least three times more per kilogram for their beef than WA beef farmers, and I ask - (1) Will a ministerial or departmental representative be attending the beef producer forum in Bunbury today; and, if not why not? (2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE
AnswerView source ↗
I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(1) Will a ministerial or departmental representative be attending the beef producer forum in Bunbury today; and, if not why not? (2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(1) Will a ministerial or departmental representative be attending the beef producer forum in Bunbury today; and, if not why not? (2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(2) Can the minister confirm that bulls were making 48c a kilogram in Mt Barker recently, yet bulls of the same weight were making 148c to 154c a kilogram in eastern states markets? (3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(3) What is the reason for this discrepancy and what is the government doing to ensure WA producers get an equitable return on their beef? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
I thank the member for some notice of this question. (1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
(1)-(3) Obviously, I was unable to attend the Bunbury forum today because of my duties here in question time. Representatives from both my ministerial office and from the Department of Agriculture and Food attended the producer forum and, indeed, just a few moments ago I received some feedback from the representative from my office who attended that meeting. Yes, I noted the report in last week’s Farm Weekly . Bull beef is a very specialised component of the beef market. The National Livestock Reporting Service reports average prices for major markets throughout Australia. For comparison, prices in Western Australia in 2007 peaked in May this year. Australian prices compared with Western Australian prices for the three major cattle categories for the period May 2007 to October 2007 - that is, since the peak to almost the current time - were about 10 per cent higher for trade steers, 19 per cent higher for Jap Ox and 24 per cent higher for US Cow. The Australian prices for October were 158c per kilogram live weight for trade steers, 300c per kilogram dressed weight for Jap Ox and 243c per kilogram dressed weight for US Cow. The Western Australian prices for those three categories respectively were 155c per kilogram, 239c per kilogram and 161c per kilogram. There are a number of reasons for those differences. Firstly, Western Australia has a smaller domestic market, which influences prices by making Western Australia more export-centric in terms of its price-setting process. Secondly, significant quantities of beef are imported into Western Australia from the eastern states for a range of reasons. Thirdly, there are only two major beef export abattoirs in Western Australia. There is probably room for only two, because it is a quite small industry in this state. Fourthly, there are commercial difficulties between producers, processors, retailers and exporters. I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
I will consider the outcomes of the Bunbury meeting, at least those that are relevant to my portfolio. The Department of Agriculture and Food has worked for a very long time on increasing the professionalism of the beef industry. It still has a fair way to go. The beef industry has a number of issues that relate particularly to its relatively small size, making it a less professional industry than that which operates in the eastern states. The department’s work has primarily involved encouraging more widespread adoption of supply chains to try to even out the supply going through abattoirs, primarily by increasing throughput through feedlots so that capital utilisation of our abattoirs can be more efficient. I am not sure about what happened today. The anecdotal report that I got was that the only resolution from the meeting was that the Western Australian government should build a new service works. The Western Australian government got out of the beef industry a long time ago; in fact, it was in the early years of the last coalition government, with our support. I do not think that the government has a place in the beef industry. I will be amazed if that was the only resolution to come out of the meeting, given all the things that are so patently wrong with the industry. I cannot believe that the only thing to come out of that forum, which was attended by some 300 people, would be that the government needs to build a new abattoir. We are not short of abattoir space in this country; we are short of people to work in those abattoirs and we are short of competition. Outrageous things, including corruption, have become obvious from the Coles Myer supply chain and purchasing practices. It is a bit of a tragedy if the beef industry cannot recognise that it is a lack of competitive forces that is challenging the industry. I have sought the involvement of the Australian Competition and Consumer Commission in that matter, because I believe that it is not simply a matter for the criminal courts or an internal disciplinary matter for Coles Myer. This matter has affected the competitiveness of the beef market Australia-wide. The response from the ACCC was that it did not see a problem, which is a critical example of what is wrong with the ACCC and the consumer protection laws in this state. I hope that a future federal government, of whatever complexion, will fix that situation.
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