NFF Interim Report on Code of Conduct; Allan Fels and APIA and Processor Responses, ACGC responses.

Feb 8, 2024

November 2024 update

Andrew Lumb, the “go to” lawyer for meat poultry growers, of his own volition chose to write to Dr Andrew Leigh, Assistant Minister for Competition. See the Letter    Letter to Hon. Dr Andrew Leigh

Leigh’s response is as follows:

Dear Andrew,

Thank you for your insights – greatly appreciated. I’ve cc’d Tori Barker, my competition adviser, so she’s also aware of the points you raise.

Kind regards

Andrew.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Andrew Leigh

Assistant Minister for Competition, Charities & Treasury

Assistant Minister for Employment

Federal Member for Fenner

Parliament of Australia

 

 

Feb 2024 update

The NFF Interim Report recommended a Mandatory Code of Conduct for poultry meat growers. The report can be found HERE

ACGC has responded HERE

Since then, plenty has happened including some quite remarkable allegations against growers! Read on for the full timeline including updates from APIA and the Processors.

The NFF report identified that:

  • There is an imbalance of power between growers and processors
  • Supermarkets have thrown their support behind a mandatory Code and are willing to state this publicly.
  • The most efficient way to provide countervailing power is likely to be a Mandatory Code.

ACGC has noted that:

  • the timelines for the project have been too slow
  • growers only receive around 3% of the retail price of poultry, so prices are unlikely to rise if there is a mandatory code
  • the wording of the proposed mandatory Code is generally OK, but does leave some things out.
  • the report appears to have “swallowed whole” the processor allegations and claims without analysis and just plonked them into the report with no critical review – which ACGC has now provided.

In the meantime, on 7th Feb, Prof Allan Fels released an ACTU sponsored report that identifies that:price rises for business

  • prices have risen by an extraordinary amount since CoViD, largely due to the lack of competition in many sectors.
  • that government monopoly and industry concentration, particularly duopolies are resulting in price rises high than that which would be seen even with a cartel
  • that the Food and Grocery Code of Practice, which is currently voluntary, should be made mandatory – which is an interesting commentary on voluntary Codes that is useful to growers,
  • that government needs to take immediate action in the ChildCare, Energy, Aviation, Banking, Energy, Shipping costs affecting FNQ and NT, Food/Grocery, Electric Vehicles, Pharmaceuticals and “out of pocket” medical expenses sectors.

On that basis, we have calculated that growers only receive around 3% of the retail cost of chicken, considering the different value-added cuts and using supermarket retail pricing. The lends the lie to processor protestations that a Code will “dramatically increase the price of chicken”.

THE SUPERMARKET REPRESENTATIVES SUPPORT A MANDATORY CODE OF PRACTICE FOR GROWERS.

UPDATE: APIA AND PROCESSORS RESPOND TO NFF INTERIM REPORT 

In two separate responses to the report, APIA and the processors noted that, as well as other things:

  • growers were happy with the status quo because not all of them attended workshops or responded to the survey.
  • banks were happy with the status quo because they were not putting restrictions on lending
  • growers are not part of the meat poultry supply chain because they do not own the chickens
  • growers have no risk in their business
  • growers are adequately paid
  • any change to the growing fee will increase prices.

ACGC HAS RESPONDED TO THESE ALLEGATIONS HERE: 24 Further response to Interim report FINAL

ACGC also notes that growers receive less than 3% of the retail cost of chicken, and that 90% of any grow fee price rise will be captured by processors and supermarkets.

 

 

NOW is the time to let you elected MP know that we NEED THIS MANDATORY CODE! You are an elector, you have the right to visit your MP and make your voice heard. THIS IS LITERALLY “NOW OR NEVER”  – if you don’t get this Code, your grow fee to costs ratio will continue to fall. CAN YOU AFFORD NOT TO SEE YOUR MP RIGHT NOW?  If you can be bothered advocating for YOUR BUSINESS with your local MP, we have briefing notes available FOR YOU HERE: 24 02 Ministerial Briefing