BEEF processors have come under scrutiny today in Roma where federal senators heard public submissions on the effect of market consolidation on the red meat processing sector.
The Rural and Regional Affairs and Transport References Committee is conducting the inquiry, chaired by Senator Glenn Sterle.
Senators John Williams, Barry O’Sullivan, Matt Canavan and Joe Bullock are also sitting on the committee.
A range of industry participants addressed the committee today including Blair and Josie Angus, Ian McCamley and Cattle Council of Australia (CCA) board member and central Queensland producer, David Hill.
Mr Hill told the inquiry there were many transparency issues in the processing sector including use of dentition and P8 fat to discount animals.
“On the issue of dentition there is no correlation to age and no correlation to eating quality,” David Hill said.
“The frustration for producers is that we have supposedly spent $220 million on MSA, we have the best grading system in the world, and we are still stuck with dentition and P8 fat.”
Mr Hill said the inquiry was a “good starting point” for vital changes in the industry.
“I have always believed that if we are going to have an effective red meat supply chain that we need effective representation from each sector,” he said.
“I believe we need a value based proposition that is going to take the price point from what the consumer is telling us they are willing to pay.”
Other issues raised included processors removing excess trim from animals to reduce returns to producers.
Central Queensland cattleman Ian McCamley suggested independent inspectors, funded by producers, could be used to monitor the behaviour of staff inside processing plants.
He said producers currently had no way to determine what happened to their stock after they arrived at processing plants, despite retaining ownership of the animals until they were graded and a price was determined.
He said surveillance equipment such as CCTV could be used to ensure stock and carcases were handled appropriately.
“I know the processors wouldn’t like it but they would get used to it and ultimately they would see it would become a tool for all in the industry,” Mr McCamley said.
North Queensland beef consultant and Australian Beef Association (ABA) member Peter McHugh also highlighted issues around the use of butt shape to discount carcases.
He said graders needed to be independent and should not be employed by processors.
“We have to have independent, uniform graders,” he said.
Further hearings will be held in Canberra (August 27) and Albury-Wodonga (September 2) with the committee's report due by March 2016.
