Australia pushes for transparent beef cattle price grids

The Australian Competition and Consumer Commission is pushing for processors and major cattle traders to publish their price grids after finding severe failings in the current system.

Recommendations from a six-month study of Australian beef and cattle markets by the commission found serious shortcomings in current price reporting and the independence and auditing of carcass grading.

See also: Rushed spec changes unfair on beef producers

The ACCC found prices for many cattle transactions are not reported or poorly reported, resulting in producers and buyers not having the data they need to make informed business decisions.

They also have concerns about a lack of independence and transparency in the process of grading carcasses at abattoirs.

Shortcomings

ACCC chair Rod Sims said: “The report has identified serious shortcomings in current price reporting and the independence and auditing of carcass grading, and concerns about cartel and other conduct affecting competition in saleyard auctions.”

The commission is also worried about features of saleyard auctions, which make them susceptible to anti-competitive behaviour.

“During the study, we have heard specific allegations of cartel and other anti-competitive conduct involving saleyards, which the ACCC is now assessing separately,” Mr Sims said.

The commission made 14 recommendations in total and is now seeking industry feedback.