AUSTRALIAN BEEF ASSOCIATION IS SET TO DEMONSTRATE WHO GETS WHAT SHARE OF THE RETAIL DOLLAR

Producer’s, politicians, the Australian Competition and Consumer Commission, (ACCC)and even our own agri-political organisations have over the years all been misled with a cocktail of misinformation and half truths about the producers share of the retail dollar when it comes to beef.Some of the claims are so ridiculous that they are almost laughable, Australian Beef Association (ABA) EO David Byard said ..PRODUCER SHARE OF THE RETAIL DOLLARRecently at Meat and Livestocks Australia’s, (MLA) annual general meeting Managing Director stated that in 2003 the producers share of the retail dollar was 30.5% and by 2012 producer share of the retail dollar had gone to 35.6%.Raw figures can be misleading, the fact is in 2003 the producer received 11 cents less for their carcass than in Nov-Dec 2012. So on a 200 kg carcass produced in 2012 would get $22 more than they got in 2003, the price at the checkout had gone up by hundreds of dollars, who get the greatest share, it is not rocket science.

SALEABLE MEAT OFF A CARCASS

This debate is nothing but misleading, the figures used are nothing but a convenience for some sectors of the industry,, the ABA has asked for years for this to be clarified, but those in a position to do so have done nothing, where is the leadership?.

MLA says the yield of a carcass is 57%, the ABA maintains and agrees with Aus Meats that the yield is in fact is closer to 70%.

David Byard has been criticised and the ABA has been told it is confused, by some so called experts in the past, over yield ratios. Those wishing to criticise say the ABA is getting confused and the wholesale yield is 70% however at retail level the yield comes down to 57%.

What we are being asked to believe is there is 26kg of extra trim removed between wholesale and retail, clearly a big difference between the two yields as this would greatly affect the outcome, and would clearly suit some sectors of the industry for their propoganda.

WHAT CAN BE DONE TO PROVE WHO GETS WHAT SHARE OF THE RETAIL DOLLAR

Because no one wants to question other sectors of the industry , the ABA is arranging for a animal to be walked into an abattoir as a live animal and to be tracked through the abattoir with all weights and costs involved followed through to case ready meat. The ABA will be inviting industry representatives to watch this process.

HOW CAN THIS BE DONE?

This case study will document how much the producer was paid for the carcass, showing the killing costs, the value of hides, offal and sweet cuts.

Then the carcass will be boned, trimmed with a cost established for each stage. Saleable meat will be weighed separating the bones and fat.

All of this will be done with an independent umpire to make sure that everything is above board, this person or persons will record, film and document the whole process and cost..

The next move will be to cut slice and pack into case ready meat which will be priced according to the value of the cuts. This will give everybody a clear explanation of the methodology used by the ABA under a guidance of a university.

MLA, politicians, and ACCC will be all invited to scrutinise this process, it will be fascinating to see who comes to watch the process, or will they just believe the other sectors of the industry who have been so vocal as they have been in the past?.

THE OUTCOME

The ABA believes this will give everybody involved a more accurate picture of the value of a carcass, at a set price both retail and the farm gate and everything in between, and for the first time a true and accurate understanding of who gets what share of the retail dollar.

Can we take this opportunity of offering a HAPPY CHRISTMAS AND A PROSPEROUS NEW YEAR, from the board of the ABA.

Our tick-tacks will start up on the first week in January 2013.

This information is intended as a guide only. No Warranty is given as to its accuracy.

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