Red Meat Industry Structure from 1998 to 2010.

This structure is very complex although probably done with good intentions as time has gone by we have seen how it simply cannot work, and a restructure is overdue.

What are simple, are the 5 peak councils that have a big say over the running of the MLA. Part of this is done through our red meat advisory council who then reports to the Minister.

Funding sources of the MLA are very interesting. The Cattle producers contributed $59 million in 2009 and in 1998 it was $27 million. Sheep meat contributed $30 million in 2009 however, in 1998 it was $12 million.

Lot feeders popped in $7.2 million in 2009. Processors it seems paid money in a dollar for dollar basis and the government tipped in $30 million, into R & D.

This seems an incredible situation when you have the producers putting in the lion share of the funding for the MLA whilst supermarkets, retailers and others are the beneficiaries of the R & D marketing. E.g. supermarkets giants Coles and Woolworths have an employee working on each account.

The MLA base its success or otherwise on the price of retail meat. This leaves the processors and retailers trying to get products as cheaply as possible whilst the producers who want as much as possible are getting screwed.

Under the present structure the MLA is forbidden under its charter which is R & D and marketing from entering into anything political. In truth MLA can be very political; HGP’s and live shipments are two things that the MLA has been very vocal about. Usually MLA is more subtle with their political manoeuvers.

During Senate and ACCC’s hearings the MLA sat back and said nothing, whilst AMIC came out over the live shipping suggesting that it should stop forthwith.

In theory Cattle Council has the job of looking after producers interests in a political sense and make sure the MLA is looking after producers. This simply hasn’t worked and with three employees and very little funding Cattle Council is a voice in the wilderness. A good example is when the supermarkets had inquiries into them by the Senate and the ACCC the Cattle Council being hobbled by its lack of finance left the supermarkets free rein to peddle their spin which was in direct contradiction of MLA’s published figures and showed just how ineffectual the Cattle Council really are.

In stark contrast the other peak councils are well resourced and have functional political machines. AMIC are a good example, they have in amongst their members people like Swift and Cargills who would have direct lines to Canberra and gives them vast power.

One of the most amazing things is the CEO of Swift is on the MLA board.

Aus-Meats is another part of the industry they control how much a processor can trim before the scales and the language used on beef, YG, YP, and A which is interesting in itself as “A” is considered the best in marks and in different trades, however for beef this represents the rubbish end.

When one looks at who is on the Aus-Meats board one could be left in little doubt as the fox is in fact in charge of the hen-house.

Surely the time has come to have a look at the red meat industry structure with a view of restructuring it.

Maybe we have a beef corporation that is a one stop shop that controls R & D marketing and political lobby for producers. On the other hand we may look at sheep and beef still looking at a one stop shop.

This one stop shop whether it be beef and sheep could be funded by producers for the benefit of producers, not for multi-national processors and large supermarket duopoly.



ABA Submission to the Productivity Commission on MLA R&D Aug/Sept 2010

Click on Submission button on the left.

Letter to Members and Beef Producers from ABA President, Brad Bellinger, June 2009

Click on Chairmans Message button on the left.

ABA Report on the Efficacy of NLIS

Click on NLIS Report button on the left.

ACCC Submissions by ABA on the market power of supermarkets and beef pricing

Click on Submission button on the left.

The Australian Beef Association is a national, representative body, focused on improving profitability for the beef industry by giving control and ownership of industry projects and policy back to members.