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 Beef group labelled hypocritical 

Beef group labelled hypocritical

23/10/2008 11:09:00 AM
THE Red Meat Action Group's (RMAG) move to truck cattle over east to be processed has been labelled as "hypocritical" by one of WA's biggest abattoir owners.

Western Meat Packers owner Rod Russell said the same group "yelled and screamed" when Coles was importing beef into WA.

"They were very vocal about eastern states' beef coming into WA yet here they are sending beef the other way," Mr Russell said.

"I don't think they are making such a price premium by sending cows and bulls to the east.

"Our grid price for cows, which is currently $2.35, actually works out to be more than what they received for the cattle they sent over east anyway.

"They said they received $3.10/kg and the cows averaged 400kg carcase weight.

"This gave a price per head of $1240 and if you take the $300 freight cost off that it equals $940.

"Divide $940 by 400kg and you get $2.25/kg.

"The response was that there were no penalties over there, but I don't care who is doing the processing.

"If a cow has 50mm of fat you cannot process it or you will go broke."

RMAG chairman Gary Buller refuted Mr Russell's claims.

He said the east-bound cattle were used for manufacturing beef only and would be "packed in a box and shipped overseas" and have no affect on WA's market.

"It is not used for primal cuts. It is hot boned, put in a box and goes out of the system," he said.

Mr Buller also said the price being offered was a flat grid price, not a floating grid offered by Western Meat Packers.

"There may be reasonable prices on offer through the Western Meat Packers grid, but that is a floating grid and the specifications are quite tight," he said.

"If a cow isn't quite right it is discounted heavily.

"With the Victorian market we know exactly what we are getting without penalties.

"We have been offered a floating grid in the east of $3.35/kg."

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comments


Date: Newest first | Oldest first
I am a small producer of a 100 head herd . I have just sent yearling heifers to Midland and recieved $1.35 kg & $459 per head. I believe as an industry we either have to many links in the supply chain to get beef profitable for all concerned, or if we as price takers keep losing nmoney and leave the industry where will the industry end up - we need to look after the producer for our own existence, I am personally not out to make a living out of my cattle but I would like it to at least break even to start with. I would be very interested in a co-op style abattoir and start selling beef instead of cows? As an industry I do not see any comrades around me all I see is the sharks circling. Yes I have a sense of humour, but I am sure other producers feel this sentiment.
Posted by Ian on 23/10/2008 12:14:08 PM
i think what the red meat action group is doing is good if you send stock to waste you will get slaughtered in price. Their penalties are ridiculous. If Rod Russell wasnt concerned about RMAG activities he wouldnt be making a noise at the moment Best of luck RMAG kick them as hard as you can because these abatoirs live for today and dont think of the future
Posted by pete on 23/10/2008 1:45:14 PM
I agree with you Ian. I too am a small producer and I've just left the industry. I've been ripped to bits by these abattoirs. They invent all these penalties when it suits themselves. They offer you a reasonable price then they tear you to bits with their invented penalties .
Posted by shaun on 23/10/2008 2:00:16 PM
RMAG is the closest thing to a union that our producers have - i urge all wa producers to get behind them and support it.
Posted by rod on 23/10/2008 2:12:07 PM
I don't see anything hypocritical bypassing inefficient uncompetitive processors who offer rates that don't cover production costs. If they can't afford to, or more likely don't want to pay fair market prices, send the cattle to someone who will. Why should producers accept a loss to line their pockets? We are a long way from having a equitable system in WA. Producers rightly should be looking for alternative markets. How many cattle can we send over there? I also would be all for seeing a co-op style industry set up in WA.
Posted by SW Producer on 23/10/2008 11:00:43 PM
We've all been told in the past to become more efficient or get out. The inefficient guys left ages ago. Yes it's time that there was a massive rationalization of these wa abattoirs - they're obviously at the end of the road. Maybe if all of us pooled our stock we could organize a boat to shift the stock east.
Posted by sw beef on 24/10/2008 12:09:43 PM
Yes maybe the inefficient guys have left the inudstry, but for those of us who have stayed we need to be paid accordingly. I would like to say that it is not just the abattoirs that pay pittence but also the small corner butchers. This is seen at the yards not just the direct sales. I too am a small producer and I have been selling direct to the public, but with a much better outcome. I am disgusted with the whole situation. With all our cost going up, the price of beef has not moved or gone down, depending on the day you decide to sell your animals. I do see there being a change and it should be for the beef producers not for the middleman. If we all go out of business there will be no abattoirs, yards, and all the butchers will have to bring their meat in or the consumer will go vegetarian!!!
Posted by blonde on 27/10/2008 10:51:38 AM

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