Dealing with Australian Grass Fed Beef Industry Issues

Australian Beef

Producers' Share Of the Retail Dollar

This is a great example of what the present structure is delivering to grass fed producers for their statutory levy.

You will note by this chart that in 2000 the retail price of beef was $10/kg while live beast was $1.80/kg. by 2012 the retail price had risen to $16/kg whilst the producer still received only $1.80/kg.

The chart below clearly shows the price of a 400kg beast at $1.80/kg to be $720 in 2000. In 2012 the price to producers was still the same; this in real dollar terms is a 30% reduction in return to the producer, while the retailers are making an extra $844. We should also consider the increase in costs to the producer, such as wages, fuel, carbon costs, etc. Putting extreme pressure on viability of producers.