The Australian Competition and Consumer Commission has today released an issues paper for its cattle and beef market study. The market study was announced by ACCC Chairman Rod Sims on Tuesday.
The issues paper provides detailed information on the scope of the study and how interested parties can participate.
“I encourage anyone involved in the cattle and beef industry to read the issues paper, and provide the ACCC with a written or oral submission,” ACCC Commissioner Mick Keogh said.
Key issues to be covered by the study include:
- competition between buyers of cattle, and suppliers of processed meat to downstream customers
- the implications of saleyard attendees bidding on behalf of multiple buyers
- impediments to greater efficiency, such as bottlenecks or market power at certain points along the supply chain
- differences in bargaining strength, and the allocation of commercial risk between cattle producers and buyers
- the transparency of carcass pricing and grading methods
- seeking information on the share of profits among the cattle and beef production, processing and retailing sectors
- barriers to entry and expansion in cattle processing markets.
The ACCC will analyse information collected from submissions and forums and will publish draft findings for further comment, likely in September.
The ACCC will then release a final report, likely in late November.
The issues paper and further information on the market study is available at: www.accc.gov.au/cattlestudy