Submission to Victorian Food Security Inquiry.
in Feb 2024, the Lower House of the Victorian government examined food security in the wake of urban encroachment.
You can see the ACGC Submission to this Inquiry here: 24 Vic Submission FINAL
NFF Interim Report on Code of Conduct; Allan Fels and APIA and Processor Responses, ACGC responses.
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:
- 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
ACCC publishes Guides and Assistance around new unconscionable contracts law changes
From 9 November 2023, changes to the Australian Consumer Law now ban proposing, using, or relying on unfair contract terms in standard form contracts with consumers and small businesses.
Prior to this a Court could only declare specific terms of a contract unfair and therefore void but they were not prohibited, and the Court could impose any penalties. As of Nov 2023, Courts can impose substantial penalties on businesses and individuals who include unfair terms in their standard form contracts.
The maximum financial penalties for businesses under the new unfair contract terms law are the greater of:
- $50,000,000;
- three times the value of the “reasonably attributable” benefit obtained from the conduct, if the court can determine this; or
- if a court cannot determine the benefit, 30 per cent of adjusted turnover during the breach period.
The maximum penalty for an individual is $2.5 million.
The changes apply to:
- standard form contracts made or renewed on or after 9 November 2023.
- a term of a standard form contract that is varied or added on or after 9 November 2023.
Where a term of a contract is varied or added on or after 9 November 2023, the changes relevant to deciding whether a contract is a standard form contract apply to the whole contract.
The definition of a small business contract also changed. The protections now cover businesses with 100 or fewer employees or that make less than $10 million in annual turnover and apply irrespective of the value of the contract.
ACCC has also provided extensive information on what this means in your contract negotiations and how to bring this to the attention of processors. There is a whole website HERE and a handy printable guidance note Unfair contact terms practical tips for businesses
NOTE THAT ALL POULTRY MEET GROWING CONTRACTS ARE CONSIDERED TO BE “STANDARD FORM” CONTRACTS
Avian Influenza – symptoms, biosecurity risks, reporting
Department of Agricuture and Fisheries, and the Australian Chicken Meat Council have published brief but important notes on recognising High Pathogenicity Avian Influenza, reporting it, risks and biosecurity.
Common signs of HPAI include:
- sudden death
- • respiratory distress
• lethargy
• inability to walk
• no appetite
• unusual head or neck posture
• droopy appearance
• diarrhoea
• ruffled feathers
• swollen head, wattle or comb
• drop in egg production.
The virus can remain active in manure, water and carcasses for days to weeks if it is not processed (eg by composting temperatures). See here for more information HPAI Newsletter – DAFF
The Australian Chicken Meat Federation, of which ACGC is a member, has also published a handy guide to what actually HAPPENS to you and your farm once an emergency disease outbreak is declared: FINAL _EAD Flyer
NFF publishes Interim Report on Potential Mandatory Code Of Practice for Growers
After months of workshops, interviews, surveys, Departmental enquiries and at least one Freedom of Information request, teh NFF (contracted to the Australian Government) has released the interim report on the poultry meat market in Australia, policy options including those from overseas, and a draft Code for consideration. This is availalbe for consultation and comment for the next 2 months ONLY. Depending on the feedback or fightback, government MAY OR MAY NOT proceed to a Mandatory Code.
IS YOUR FUTURE WORTH 4 HOURS? Yes, it’s a drag to read, but it’s your future. If you choose not to, you accept any consequence that comes out of this project, inlcuding potential for contracts below your cost of production. You CANNOT rely on your delegates to do this work. READ AND COMMENT, PRIVATELY, BACK TO THE ACGC OFFICE and we will pass your comments on to NFF and politicians anonymously. Get your accountant or lawyer to loo,k over it and give you advice. THIS IS YOUR LAST CHANCE. Clock on the below. we particularly suggest you read pages 40-46 of the report, and the proposed Code (commences page 96). Click on the below to get started.
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