Mar 27, 2024
The NFF, under commission from the Department of Agriculture and Fisheries, have completed the Final Report examining regulatory options for the Chicken Meat industry.
It recommends a mandatory Code of Conduct, and the supermarkets have agreed. SEE THE FINAL REPORT HERE. Even if the whole document is just a “meal too large”, start at page 140 and see exactly what the processors are saying about you! 
The processors appear to have declared war on all growers. In addition to the above, they have been running around Canberra telling anyone who would listen that no Code is needed because there is no risk in growing chickens. It’s been reported that they have now engaged a PR firm (just like big tobacco did once!) to push their case with Parliamentarians. Reports out of growers meetings are that they are engaging in a new level of thuggery, threat and intimidation.
Growers have wanted government help for more than 20 years. The goal (a Code of Conduct) is in sight, but we have to get over the processors’ hill to get there. If you do not get this Code, your income will continue to be eroded, processors will start stratifying growers by shed type or region and driving them to bankruptcy in groups. They DO NOT care if your business survives, they only care about their shareholders. IT’S NOW OR NEVER!
So what’s the next step/s?
- We have to get government to agree. That is best done by EVERY SINGLE GROWER SEEING YOUR LOCAL MEMBER. Don’t know your electorate? SEE HERE. Don’t know the name of your local MP even if you do know your electorate? Put your electorate name into the box ON THIS PAGE. Then just phone the electorate office and tell them you are an elector and ask for an appointment. When you go into the appointment, a small donation to their electoral campaign is VERY well received (around $100+) and give them the briefing note that you can download BRIEFING NOTE HERE. You can go to see your MP in groups, and if everybody goes then nobody will be singled out for “special attention”.
- Then we have to get the government to agree on the words to be in the Code. If we do our job well, the Code in the Report will be adopted. Otherwise it will be a knock-down-draq-’em-out-line-by-line battle for the words in the Code. Your membership is the ONLY thing standing between you and a Code, because we can’t fund the fight otherwise.
- Join the Fighting Fund! ACGC will take all donations and put it into a special account used only for this purpose. You will receive personal updates on where the spend is going.
- Support your elected farming representatives! They are the only thing standing between you and “NO CODE”. They are putting in huge amounts of work on your behalf. Even the occasional kind word or email goes a long way…
- Then we have to get it into Regulation. If we have done our job right, that should be a smooth ride, but since nothing about this process has been smooth, expect trouble!
MORE TO COME….
Mar 27, 2024
in last month’s newsletter we mentioned we had a seat for live consultation with former Labor frontbencher and PhD economist Dr Craig Emerson at the Food and Grocery Code review. ACGC developed a submission on behalf of growers – remembering that it’s not only the growers that are being “got at” by supermarkets; but because they are proxies for the supermarkets, processors are bring “got at” as well.
SEE THE SUBMISSION HERE
Feb 16, 2024
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
Feb 8, 2024
One month ago, 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
Jan 26, 2024
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
Jan 25, 2024
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
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