Australia: ACCC to probe cattle and beef industry

The competition watchdog’s investigation into agricultural markets will focus firstly on the cattle and beef industry.

In particular, the Australian Competition and Consumer Commission will examine competition between cattle buyers and between suppliers of processed meat.

It will also look at saleyard bidders bidding on behalf of multiple buyers, supply chain bottlenecks, barriers to entry and expansion of cattle processing markets, pricing transparency, where profits go, and the exercise of market power.

The ACCC says it will accept information from anonymous sources and treat all submissions confidentially.

“We understand that some market participants may fear retribution from commercial partners for speaking to the ACCC,” ACCC commissioner Mick Keogh said.

“Equally, firms may be reluctant to provide the data we need to understand the complete picture.”

The investigation was prompted by issues raised from a Senate inquiry into market consolidation in the red meat processing sector, and its own work, the ACCC said.

The ACCC has received an extra $11.4 million over four years to set up an Agriculture Enforcement and Engagement Unit.

Full content: The Australian

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