Politicians have entered the fight for national meat prices.
Nationals leader David Littleproud, who is the Opposition’s agricultural spokesman, is calling on Treasurer Jim Chalmers and agriculture minister Murray Watt to investigate supermarket meat sale prices.
In a press release, Mr Littleproud said the federal government must instruct the Australian Competition and Consumer Commission (ACCC) to conduct a price inquiry.
“According to Meat and Livestock Australia, some sheep and lamb categories have fallen by up to 70 per cent in the saleyards in the last 12 months,” Mr Littleproud said.
“Lamb prices have drastically reduced and cattle prices have fallen by about 60 per cent. Yet families have barely noticed a difference in prices at the supermarket.”
He’s right, prices have fallen, and there is some reflection in supermarket prices, but not much.
I’ve got a few problems with this.
Years of delays
Mr Littleproud is overlooking the cost to get meat to the supermarkets.
He’s also calling for an ACCC inquiry. ACCC inquiries take ages, so falling supply will have saleyard meat prices back up to usual prices in the two years it takes for any serious inquiry to be held and recommendations made.
And the ACCC has weak prosecutorial powers. So even if it found supermarkets were price gouging, it could do nothing about it. It could recommend a company be fined, but then it would probably have to go to the courts, which again, could take years.
As an experienced politician, Mr Littleproud knows all this, yet he calls for an “urgent” response and the ACCC would have “greater powers to act” than a review.
Mr Littleproud needs to show better leadership to his electorate and party than calling for an investigation he knows will not address the problem.
Makes a good headline though, and I suspect that’s his main aim.
This week’s best deals
IGA
Sensible: Philadelphia Cream Cheese, half price at $3.10. Cheesecake lovers rejoice, half-price cream cheese means you can make two! Or maybe just this recipe for Cheesecake Brownies, combining my two loves.
Indulgence: Dove soap, $3.20 for a two-pack. I love Dove soap because it’s so soft and creamy. But it only lasts a week, because it’s so soft and creamy, so I only buy it on special.
See the catalogue here.
Aldi
Sensible: Westacre Dairy Tasty Cheese, $9.99, save 80c. I started buying this when the price of Cheer cheese (formerly known as Coon) started shooting up. My cheese-fussy children did not notice the difference. Winning.
Indulgence: Collezione Oro Prosecco Rose, $13.99. If you need some bubbles for the festive season, this one could be your go-to. Aldi says it’s a ‘prize winner’, and it received a respectable bronze from the Australian website The Real Review. Better than four stars from the Mildura Show, I guess.
See the catalogue here.
Coles
Sensible: Morning Fresh 400ml, half price $2.75. I’m yet to find a better dishwashing product than Morning Fresh. I love their fresh new scents – tropical crush and peach and nectarine. If you are doing something as loathsome as washing the dishes, it might as well smell nice.
Indulgence: Rump steak, $23/kg, save 5/kg. Beef prices have started to come down and this is a good special from Coles. I’m not a fan of rump on the barbecue, but it cuts up well for a stir-fry. Each to their own.
See the catalogue here.
Woolworths
Sensible: Bickford’s Cordial, $4, save $1. Good with plain water but better with sparkling water. Fun pointless fact: in 2006, Bickford’s Lime Juice Cordial was recognised by the National Trust of South Australia as a Heritage Icon.
Indulgence: Lamb, so much lamb. Woolworths has dropped the price on almost all its fresh lamb by 20 per cent. Carnivores’ delight.
See the catalogue here.
What do you think about meat prices? Would an inquiry help? Why not share your opinion in the comments section below?
Also read: Budget BBQ: Turn cheap cuts of meat into gourmet fare
The supply chain from the saleyards to the supermarket has to be investigated
Someone is making excessive profits along the supply chain
Supermarkets are also not exercising their market power in pressuring prices to stay low
I would love to know the price of a full beast at Coles & Woollies prices, it just seems to me that there’s is a lot of Fat Cat’s involved in the buying and selling of livestock, probably a bit like the egg board and potato board, these leaches are taking the cream off the top and the poor old grassier is getting less and less and the consumer is getting charged more and more .
It is true that the major factor in the costs of Australian meat at the checkout is driven by what are essentially fixed costs of processing, transport and general handling. However the supermarkets do most of their animal processing at a very limited number of abattoirs and hence the benefits of scale should be easier to manage.
David Littleproud is right to call attention to the apparent disparity in costs at the consumer level and may encourage the supermarkets to honestly assess their pricing strategy.
We will wait for the price of the hot roast beef in Coles to come below $15 for the 500gm pack.
Maybe we will see more of the hot roast lamb as the prices of lamb have plummeted.