SITUATION ANALYSIS All data sourced from ABARES
POST FARM GATE MARK-UP (Beast’s value once it goes thru the abattoir door)
The post farm gate mark up on beef (which includes the processors’ and the retailers’ markup) has increased by about a conservative $500 per head, or 30% since 2001.
This mark-up includes the processor’s and the retailer’s margin, their cost of killing and processing. That is: the retail value, less the farm gate value of a 220kg carcase.
This money reflects the mark-up of the meat carcase only, and excludes by-products. ABA found that the by-products also made the processor an approximate extra $220 per animal.
The processor retains all the by-products (offal, hide etc) and marks-up the carcase about $100. The carcase is then marked-up an additional $1450 by the retailer, when he bones it out into retail cuts and sells the meat to consumers.