Bill Tatt: AMIC release a scathing report on the government

Stock: Bill Tatt discusses an outstanding lamb sales result and the Australian Meat Industry Council's scathing report on the federal government. Photo:: File.

Stock: Bill Tatt discusses an outstanding lamb sales result and the Australian Meat Industry Council's scathing report on the federal government. Photo:: File.

Week Ending 26/11/18

Andrew Peadon of Barlow Peadon Schute Bell mentioned to the column an outstanding sale of lambs account one of their clients at last Monday’s Dubbo Sheep and Lamb Sale.

Murray and Emma Ree, ‘The Ranch’, Tomingley sold 93 White Suffolk Samm cross lambs, six months of age with an average 67kg liveweight for $231.00.

The seconds being 134 in number realised $210.00. The vendors bred the lambs and did the shearing themselves.

An outstanding result for this family when you consider the current hot dry conditions and the prevalence of grass seed making the ideal presentation of lambs very difficult. A great result for all concerned.

Read previous Bill Tatt column’s here:

The Australian Meat Industry Council (AMIC) has released a scathing report on the federal government with regards to the cost structures imposed on the industry by various departments.

The red meat processing sector contribution to the overall economy during 2015/2016 was estimated at $21 billion. It was also estimated that the 130,000 jobs they create provided $8 billion in direct household income.

When you note the numbers AMIC have plenty of reason for concern. The processing cost for a beef body in Australia is $360 - 62. In Brazil (our most aggressive competitor in world markets), the cost is $172 – 29.

The cost in Australia when compared to the United States is 24 per cent higher and 75 per cent higher than Argentina.

The latest report stated that 54 per cent of costs not including purchase price of cattle was directly attributable to government red tape, rampant energy prices and the very high cost of labour.

Also making news:

The sheep and lamb sector did not escape these draconian charges with at least half the $40 – 67c per head cost being attributed to government charges and union demands.

With 80 per cent of our red meat production exported one can see how exposed the industry is to these crippling demands.

The writer, whilst not sure how the processor will react, would be certain that at some board room meetings across the nation the idea has already been floated that at least part of their operation be moved off-shore to take advantage of the benign policies of foreign government.

This will indeed be a sad and detrimental day for the industry in particular and the economy in general.

Rural Co the rural service company for 2017/18 has announced that revenue was up by 5 per cent to $1.9 billion with nett profit rising by 12 per cent.

While the drought in Eastern Australia hampered the overall result, good seasons in Western Australia, South Australia and Tasmania plus some very smart recent acquisitions in water trading etc helped to produce this better than expected result.

The share price on this result closed 21c higher at $3.12.