The Forum > General Discussion > Australian industry
Australian industry
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Posted by pelican, Monday, 8 February 2010 8:07:45 AM
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Dear Pelly,
Unfortunately most towns rely on one major indudustry, cars, meat, spinning mills, chocolate, et cetera - which doesn't give enough diversity within the town to absorb employment fluctuation. Greed and the pursuit of big profit tends to affect all production and if it is easier to sell to overseas investors than make an honest effort to improve the situation locally by diversification - we're faced with the problems we have today. We should not continually demand or rely on government bail-out when lack of foresight, mismanagement, may be contributing factors, of the collapsing industry. Better management practices may need to be implemented. Eg. meat industry in Young - slaughters the animals, and exports the meat. Whereas if they diversified, into production of hams, sausages, fruit packaging, and the production of packaging, which they could sell separately - they may be able to survive. That has been proven in industries - where the workers have bought the factory from managment, diversified, and are surviving as a result. Posted by Foxy, Monday, 8 February 2010 11:42:35 AM
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I agree Foxy. Governments would be better off providing a good foundation for those business to survive via appropriate economic measures rather than continually bailing out businesses. Less red tape and other positive tweakings might have positive spin-off effects.
Sometimes given our large continent, measures that might be used to keep business in rural areas are taxation offsets, fuel rebates (if one is going to use rebates at all) or interest free loans. Similar to the way doctors are encouraged to go rural with attractive free rental housing, higher salaries and similar advantages but from a business perspective rather than salaried employee. My queries come from a lack of understanding as to why governments come in to aid certain industries ie. the car industry or insulation where the results are a bit iffy and where unscrupulous contractors take advantage of government subsidies. Like roof insulators trying to flog new insulation to houses that are already insulated to take advantage of the boom gratis subsidies. Yet other sectors are largely ignored. Revenue might be better spent possibly on taxation and other incentives for small-medium enterprises that create the most employment. Posted by pelican, Monday, 8 February 2010 12:19:22 PM
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"In the current financial situation, why aren't governments doing more to keep these sorts of businesses going?"
Why do you ask the question in that way? Ask it this way "Why are governments doing so much to stop these businesses from being viable?" Every cost that government adds to these businesses makes them less viable, and every tax and regulation adds costs. There's no need for government to do anything; merely cutting back on its own depredations would help. One example: the tax on diesel. Just abolishing that alone would make so much more rural business viable and provide employment for Australians. Count up the ways that governments at all levels add to the costs of the Young meatworks, and you will find no shortage of ways the government can help to make it more viable. Posted by Peter Hume, Monday, 8 February 2010 5:05:00 PM
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Valid point Peter. It does sound better your way.
Posted by pelican, Monday, 8 February 2010 6:17:49 PM
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For the record, Killarney abb, on the QLD NSW boarder has also recently closed, although this is hot off the press and not well known yet.
The fact is that consumers simply will not pay the prices that meat should be. By all accounts 'rump steak' should be around $45 per kilo and 'Lamb chops' about the same, but, people simply won't pay this so the meat works that rely soley on the domestic market are going broke. Posted by rehctub, Monday, 8 February 2010 7:22:57 PM
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"Why are governments doing so much to stop these businesses from being viable?"
Subsidies and incentives would do nothing, re-read management's comments about the inappropriate/obsolescent business model. Meatworks have been closing and sometimes re-opening elsewhere with a new processing line for thirty years. People don't notice unless it affects them. Drought didn't help and the large drop in stock numbers is yet another reminder to those who figure on having a 'Big Australia' with a population that has doubled through migration that there are limits to Australia's capacity to produce more food. Posted by Cornflower, Monday, 8 February 2010 7:28:33 PM
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Well, a regulatory framework can be critically important.
Accordingly, businesses need to be able to do an "informed" start up within the allowed parameters AND that involves being able to, amongst other things, do your own legal research. The information age is bringing all this to our homes for research purposes, but still, there are forces at work which would keep us ignorant. " ... the tax on diesel. Just abolishing that alone would make so much more rural business viable and provide employment for Australians ... " Co-incidentally, I have been looking into "Stills" and "Steam Distillation." One of my hobbies is AromaTherapy. It is not a complicated technology, but we NOT allowed to distill our own Spirits, and cockies are not allowed to distill their own fuel. And even if we are only using a still for extracting essential oils, it is limited to 5L. Of course, you can have a bigger still if you apply for a license, but in order to be eligible I believe that you need to be producing COMMERCIAL quantities (truck loads) otherwise forget it. So here we encounter one of the main structural "bones" of the economy of this place, that being EXCISE DUTIES on certain goods: *Grog, Durries, Petrol, Alternative Fuel and Coal* And what do they all largely have in common? We all generally consume a lot of them. So, the system appears to favor concentrating the proceeds of our spending in the hands of the few, to make in effect "economic lords" who in turn donate to politicians. lord p!ss pot, lord pokie, lord cough and choke, lord pollution etc .. I personally favor a hybrid system with the necessities of life being regulated on the foundation of a model of mathematical equilibrium and mutual reciprocity, infused with Green principals of self sufficiency and constrained by Green principals of environmental protection and sustainable development, with a proactive dollop of Red Social conscience as and where required. .. It is the age old question of how to divide the turkey is it not? Posted by DreamOn, Monday, 8 February 2010 8:07:43 PM
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$AU45+ for a kilo of lambo chops you reckon? I thought you just pulled up shot one and threw it in the boot, took it home, cut it up, fed the dogs and put the rest in the freezer before the barbie?
HaHaHa Or thereafter, didn't you used to be able to by an old ewe for $AU5 from the yards? And how long does it take to cut up? And what does the guy who cuts it up get for his trouble? So, $AU45+ per kilo * ? kilos of sheep and where does all that money go? ;-) Posted by DreamOn, Monday, 8 February 2010 8:16:23 PM
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DreamOn, "It is the age old question of how to divide the turkey is it not?"
No, it is about drought and expensive sheep finally putting the kybosh on a works based on an obsolete business model that apparently has been marginal for a long time. Posted by Cornflower, Monday, 8 February 2010 8:22:48 PM
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*By all accounts 'rump steak' should be around $45 per kilo and 'Lamb chops' about the same, but, people simply won't pay*
Given tha prices are booming right now and that farmers are paid around 4.50 a kg, it seems it would only take a couple of kg, to pay for the whole lamb! Middlemen of course, are creaming it, all the way. Posted by Yabby, Monday, 8 February 2010 9:58:05 PM
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The basic point of Capitalism is motivation via “Demand and supply” (note f the wording).
No demand no supply. This way the *people* are the determinators not businesses. Do I really need to point out that there are several factors influencing demand one being price. isn't it also Capitalist mantra that those who can match demand prosper and the rest don't? NB. Libs, are supposed to be the free market (Laissez-faire economics ) which favours Big Business. Conservative supposed to be status quo. Isn't that why the Country tends to vote conservative? Labor interventionists (socialist plots, world govt. ad *nausium*) Me, well a good idea is a good idea. It seems to me that a number of poster are confused about their politics. Well their real objectives anyway. Many seem to be saying 'support *me*' without a lot of thought about how a political party system can deliver without degenerating into a battle (lust) for power. i.e. no real core principals, philosophy, just Government by talk back radio, polls or the loudest. By definition, means short term perspective, no strategic planning. bear with me there is a point, IMO, Pelican, individuals should have the right to make a profit, set up a business but to do so it should be planned. Also no one business should be allowed to dominate a town to that degree. (business 101 dictates no one source should provide more than 20% of the town's income/employment.) Therefore, major industries should be planned, facilitated ( Fed state infrastructure etc) and strategically directed in the nations interest. Not allow towns, states etc to bid for industry. This leads to short term politics, undermining the public's best interests , inefficient fragmentation of resources and setting up inconsistencies at public expense. I suggest Industry hubs these would allow for strategic planning i.e. we need abattoirs then group them better more efficient infrastructure planning , employment pools and less manipulation by the avaricious, discourages the lessor management, technology and political games, and a more level playing field.. Posted by examinator, Tuesday, 9 February 2010 8:26:25 AM
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Foreign investors always seem interested in buying into Australia's meat industry. There must be money in it for someone, probably the least going to the farmers. Meat is expensive in England, a friend who lived there said many are turning vegetarian (not all due to meat prices of course).
As a consumer I notice that lamb prices change regularly in the supermarkets. Last year, with people coming to dinner, I went in to buy a large leg of lamb and it was marked at $29 so I ended up buying two chickens instead. As Yabby mentioned, there is a lot of middlemen to pay along the way before it hits the consumer. No wonder the real costs continue to spiral upwards. You can understand why some are now selling at the farm gate (usually specialist organic enterprises). This is of course not a workable option for most producers and consumers. For the people of Young I hope other opportunities come up to ensure the town does not fall to ruin as in many other smaller towns. Many smaller towns are now offering cheap land and housing to attract people but if there are no jobs or means for self-employment it won't keep many I would think. Posted by pelican, Tuesday, 9 February 2010 9:01:53 AM
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>>Therefore, major industries should be planned, facilitated ( Fed state infrastructure etc) and strategically directed in the nations interest. Not allow towns, states etc to bid for industry. This leads to short term politics, undermining the public's best interests , inefficient fragmentation of resources and setting up inconsistencies at public expense.<<
There's a lot to be said for planning where it is done by one authority that oversees the entire process and whose efforts are directed towards serving society overall. Instead of developing in a piecemeal approach, it makes a lot more sense that the bits are built so they integrate efficiently into the whole. Take the roads in Sydney vs those in Adelaide or Melbourne. Sydney's road planning is (certainly looks) haphazard. Streets spear off at all angles, there are many junctions and the traffic is more frantic and congested as a result. OTOH, Melbourne and Adelaide's CBDs were planned around a simple grid and consequently traffic is more orderly (the trams do stuff up the flow in Melbourne though). Posted by RobP, Tuesday, 9 February 2010 10:28:56 AM
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Sounds to me like the Young abattoir is part of the restructure
of agriculture, that has been going on for a while, as a spin off of the decline of the wool industry. With sheep numbers having dropped from 170 million to 70 million, due to lack of profitability, farmers have moved to other enterprises such as more cropping. That means a lot less livestock going down those chains. So somebody has to shut down. Govt regulation would not help here, for if a company wanted to dismiss a third of its workers to adjust, redundancy payments etc would likely send them over the edge. We have a similar situation unfolding in WA. For years processors paid as little as possible for mutton and lamb. With wool unviable anyhow, mutton and lamb are not just spin offs of the wool industry anymore, they stand and fall on prices paid. Thousands of smaller farmers closed down, unable to deal with low prices, whilst the meat industry raked it in. Now its come back to haunt them, because thousands of farmers also sold their flocks and bought bigger cropping gear. So its finally dawning on the meat industry, that right now its about survival of the fittest. Those who have been good at marketing, innovation, etc and run efficient and modern plants, they will survive, others will just not have the stock. For years the price of mutton in WA was around 70c-1$ a kg, which was unsustainable for a farmer. Right now its more like 3$ a kg, which is unsustainble for meatworks. If they had paid us 2$ a kg all along, there would highly likely be alot more sheep around now. Posted by Yabby, Tuesday, 9 February 2010 11:35:26 AM
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At it again examinator. Talking through your lefty hat.
Business 101, that would be some course run by academics, who have never run a business wouldn't it. A towns only function is to service the business in an area with dormitiries for the workers. No business, no town. Check out the old railway towns, in their death throws. So we want a planned economy do we. Like the USSR, or East Germany perhaps. Or may be like china untill it freed up business. That business 101 perhaps missed the death of manufacturing in the UK after the war. That's when the lefty government forsed/encouraged companies to build factories where unemplotment was high. That was good central planning, if you wanted to kill business. I once owned a Morgan +4. In 1962 they were a bit player in the UK car industry, building 11 cars a week. Guess what? They are now the largest UK owned car maker today, still building 11 cars a week. Great stuff this central planning, by bureaucrats, & academics. Yes, lets Group our abattiors, rather than have them near the source of the stock. We can then ship live stock hundreds of Km to them, rather than ship cartons of meat from them. That's a good start on efficient industry, & waste reduction. Do you have more of this bureaucratic type wisdom for us, perhaps you would like the Irish bureaucrats hole diggers system. He ordered hundreds of holes be dug in a beach, where it was easy to dig. The idea was to then transfer the holes to where they were needed, as required. Typical central planning, at it's best. Posted by Hasbeen, Tuesday, 9 February 2010 4:45:46 PM
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*why do we balk at the idea of Australia (the Australian people) owning a project like Gorgon.*
Pelican, to answer your question on that one, Gorgon did not just happen overnight. For a start, somebody had to invest hundreds of millions of $, to even find that there is gas out there. Gas/oil drilling is not for the faint hearted. Companies can blow 25 million$ on a hole and find nothing at all. Are you suggesting that taxpayers take those kinds of risks? Fact is that at present, the Govt are the only ones who wear no risk, but can claim huge benefits, when somebody finds something. From selling exploration rights to levies on production to payroll tax, Govts have their hand out, without risk, all along the way. When Costello denied Shell the right to take over Woodside, he showed that things can be set up, so that Australian investors have a hand in these developments as well. I thought that that was a great move and a wise move on his behalf. But I really don't think that it is the job of Govt, to risk your tax dollars on oil drilling. Posted by Yabby, Tuesday, 9 February 2010 11:42:34 PM
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Pelican; Foreign investors always seem interested in buying into Australia's meat industry.
Occasionanally farmers buy butcher shops as they simply do the math between what they get paid and what we sell for and very few succeed. This is often due to lack of knowledge and, many investors also suffer a similar fait, Killarney abb as an example. Recently purchased by a rich gold miner, now closed due to lack of experience. He sacked most of the people who had the skills to run the place thinking he knew better. As I often say, if you wish to make a small fortune out of something you have no skills for, then the best way to achieve this is to start out with a big one. Posted by rehctub, Wednesday, 10 February 2010 6:59:36 AM
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Points taken Yabby, but are those involved in exploration and drilling necessarily contenders for ownership? I admit I don't know.
It just seems an irony that we abhor the idea of government-owned enterprises yet are quite happy to allow a system whereby a foreign government might end up owning the right to access Australian resources. Why not a scenario where the Australian people own the resource if the long term financial outcomes would well and truly cover the intitial costs? rehctub, I agree, many go into business without the right experience or talent to make them work. examinator It would be undesirable to dictate to business where they should establish. It is only possible, I would think, to create an economically favourable environment attractive to business, particularly in regional areas - such as access to VFT or other efficient transport options, taxation benefits, cheap land/rent etc Posted by pelican, Wednesday, 10 February 2010 8:40:43 AM
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*but are those involved in exploration and drilling necessarily contenders for ownership?*
Pelican, very much so. But the risks in offshore drilling are so great, that even large oil companies commonly share that risk between them. So if a company wins the bid for the rights to drill in a certain area, they then include others as partners, sharing the drilling costs and thus sharing any potential losses, but also profits. With gas, various companies might find gas in an area, but processing it costs billions, so they share facilities to do that. If you look at the NW shelf, Woodside are the operator, but there are about 6 companies involved and WPL only own a small stake. Gorgon also has a number of companies involved, with one being the operator. Coughing up 45 billion$ to build the infrastructure, is not peanuts. The best thing that Govt can do is to make sure that if companies do find and ship resources, that they actually pay 30% company tax here and don't just transfer price those profits offshore. Then Govt earns royalites from the resource tax. With iron ore, thats 5%, I'm not sure how much it is with gas. All those taxes benefit you the taxpayer, without the Govt risking a cent of your money on bad mining decisions. For mining is hardly their expertise, apart from mining us for taxes. Posted by Yabby, Wednesday, 10 February 2010 10:04:00 AM
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I agree with the majority of all your comments with an exception of the following point:
Unfortunately one does not "truly know" if one has the skills and talents to run a particular business until they have tried. And I commend any person trying their hand to take over and/or establish a business [if not risking their home and family coffers in the process]. An example: my parents owned newsagencies. A good few years break was taken in between. My parents' working background prior to purchasing the first newsagency was a livestock carrier business [father started out as owner/driver of a semi-trailer] and my mother had worked in one position only in real estate for a couple of years. They had worked hard to pay off most of their home before taking a bank loan. May I add here that Dad completed school at a mere 14yrs of age with zero qualifications [admire his determination, motivation honesty and hardworking ethics]. Mum's academic background similar. The Newsagency they purchased doubled and tripled in profits after Mum trained up Dad in all aspects of the business and their customers always returned over the years. Honesty, integrity, friendliness and ensuring customers were satisfied and happy receiving their papers delivered were key ingredients in running their highly successful businesses. Talents and skills in some areas perhaps; however the key attributes both possessed were paramount in their success. These attributes were passed on to my siblings and self also as my brother owns and runs the most successful hospitality venue that is widely acclaimed in his NSW city. Posted by we are unique, Thursday, 11 February 2010 8:44:52 PM
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*Posted by Yabby, Monday, 8 February 2010 9:58:05 PM*
" ... prices are booming right now and that farmers are paid around 4.50 a kg, it seems it would only take a couple of kg, to pay for the whole lamb! Middlemen of course, are creaming it, all the way. ... " http://catalogues.coles.com.au/portal/embedproductlist?Ntt=lamb&Ntk=Primary Coles Butcher Lamb Leg Roast - $AU8:50 kg (was $AU12:49) Farmer: i. Cost to produce per kilo - ii. Sale price per kilo - $4:50 iii. Gross Profit per kilo - Transport to Abattoir: i. Cost per kilo - $ ii. Sale price per kilo - $ iii. Gross Profit per kilo - $ Abattoir: i. Cost per kilo - $ ii. Sale price per kilo - $ iii. Gross Profit per kilo - $ Transport from Abattoir to Retailer: i. Cost per kilo - $ ii. Sale price per kilo - $ iii. Gross Profit per kilo - $ Retailer: i. Cost per kilo - $ ii. Sale price per kilo - $8:50 - $12:50 iii. Gross Profit per kilo - $ Anyone care to have a go at filling this in? Feed the Man meat! Posted by DreamOn, Saturday, 13 February 2010 6:42:15 PM
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OH, excluding labour, my rice wine is coming at a bit less than $AU1:00 per litre, with different strains likely producing 16 - 20% alc p.v.
.. I must try some *Moulin Rooz Absinthe* when I'm next in town and go for a "fly" with the "Green Fairy.: ;-) Might give some Jappo microbes a run, found here: http://www.tibbs-vision.com/sake/index.html Posted by DreamOn, Saturday, 13 February 2010 6:49:57 PM
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Farmer:
Unknown as it depedns on seasons. This exercise must be carried out on a 'whole lamb' as it is impossible to buy a leg of lamb from the farmer. Transport to Abattoir: Also unknown, perhaps someone else can add this. Abattoir: Depends on many veriables. Hide prices make a large difference and the demand at present is low. Transport from Abattoir to Retailer: i. Cost per kilo - $ Unknown, usually charged at 10cents per kilo ii. Sale price per kilo - $ $6.20 iii. Gross Profit per kilo - $ Unknown Retailer: i. Cost per kilo (whole lamb) - $ 6.20 ii. Sale price per kilo - $8:50 - $12:50 iii. Gross Profit per kilo - $1.40 - 5$5.40 16.5% - 43.2% Now if one buys a lamb for $6.20 kilo, then sells the legs for $8.50 kilo, they will most likely go broke. Mine sell for $12.00. Now no disrespect to your parents, but, running a newsagent can hardly be compaired with running a full blown meat works, or even a butcher shop. Firstly, all that is really required to run a newsagent is good customer relations and people skills. The risks are very small as most items that don't sell are refunded by the supplier. Also, many items are sold prior to having to pay for them. This is why newagents are so expensive to buy as the skills required are low and the risks are minimal. Running a meat works in comparison is huge. Posted by rehctub, Sunday, 14 February 2010 7:04:30 AM
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Posted by rehctub, Sunday, 14 February 2010 7:04:30 AM
" ... A whole Lamb ... " Ok! Cheers mate. How about we compile this then based on how it is right now? Someone may choose say to pick a drought effected area, or otherwise an area with which they are familiar. A. Farmer: i. Cost to produce per kilo - ? iii. Sale price per kilo - $4:50 iv. Gross Profit per kilo - ? *NOTES* Varies with season B. Transport to Abattoir: i. Cost per kilo - $0.10 iv. Gross Profit per kilo- ? *NOTES* That would be within a fixed range I would assume? C. Abattoir: i. Cost per kilo - $4.60 ii. Transport to retailer - $0.10 iii. Sale price per kilo - $6:20 iv. Gross Profit per kilo - $1.50 *NOTES* numerous variables - hide prices .. D. Retailer: i. Cost per kilo - $6:20 ii. Sale price per kilo - $8:50 - $12:50 iii. Gross Profit per kilo - $2:30 - $6:30 Posted by DreamOn, Sunday, 14 February 2010 1:01:31 PM
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DreamOn
Just a few points that most people are unaware of. Once the animal leaves the farm gate, there are many costs before the butcher receives the carcase. e.g; Agent fees, gov taxes, fuel levies, livestock handing fees at the abb, kill fee, gov charge again, QA personel fees, chiller storage fees, load out fees, cartage fee. They all add up. I remember back in the late 80's when sheep were selling for less than one dollar each. Yet, they still cost me around $15.00 landed at my shop. All on-costs have skyrocketed since the 80's. People see farmers getting $70 for a Lamb and wonder why butchers have to sell just one leg for $25.00. Because the $70 lamb costs me $140.00 to buy. That's before I pay rent or wages to have it butchered. Posted by rehctub, Sunday, 14 February 2010 7:02:28 PM
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pelican,
What would really gall the people affected by meatworks closures is the federal governments plans to allow the importation of meat from countries with BSE (Mad Cow Disease). http://www.northernstar.com.au/story/2010/02/06/mad-cow-meat-fears-beef-beef-farmers-rail-against-/ From the article cited above, "Yesterday the Australian Beef Association told the inquiry beef imports would ‘put 300,000 out of work in a week’." Maybe the States would be better off seceding and let the federal government run the ACT with its mobs of highly valued roos. Posted by Cornflower, Sunday, 14 February 2010 10:57:23 PM
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Clearly there is dissatisfaction in certain areas of the electorate. Here we are currently considering the issues raised by:
RehcTub* & *CornFlower* What can be done in my view is if we map out the financial aspects of the issue, then we can identify which issues can be remedied by politicians and thereafter, which politicians represent these interests and which do not, both historically, currently and into the future. To add a bit of ethanol to the fire, I would remind people that, and assuming my memory serves me well, and to follow on from *CornFlower* that one of the first things the liberal party did under j.howard back in the 90's was to trash the pig industry with cheap imports of dubious quality. In any event, this place does appear to be haunted by the politically active so strongly voiced political views with weight may resonate in relevant areas. Our ongoing thanks to *RehcTub* for sharing his insight into the meat industry. I'll try and recompile .. (BANG - just got a mozzie in real time- my drains might be due for some more pemethrin soon - we are plagued by them here - Thank !%#! no one has caught dengue.) .. the statement with the updated information. Then we can, if people like, consider the contentious guvment instigated charges & regulations (and I recall the diesel fuel levie and prohibition on self produced distillate have been raised as objections) with the backdrop of what the relevant Acts & Regs are, who made them and who on a specific level voted for them. It is a shame the software used to run this place is so rudimentary. Back in 2000 I was in one forum where you could post pics, sounds, vid, have a mates list, screen out the people you weren't interested in hearing from and run up a variety of different on line polls. Posted by DreamOn, Monday, 15 February 2010 1:52:33 PM
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Oh, as people are no doubt aware, things are not always made plain in politics, and consequently are not always as they appear.
I note further to "evidence" this a comment made by the: *Member for Sturt* Chris Wyne, who elaborated on the process of spin in a recent interview by suggesting if a decent retort is not at hand, then the fallback position is too and I quote: "Muddy the Waters." ... GROAN ... A. FARMER: i. Cost to produce per kilo - ? iii. Sale price per kilo - $4:50 iv. Gross Profit per kilo - ? *NOTES* Varies with season B. TRANSPORT TO ABATTOIR: i. Cost per kilo - $0.10 iv. Gross Profit per kilo- ? *NOTES* That would be within a fixed range I would assume? C. ABATTOIR: 1. Livestock handing - 2. Kill fee 3. Chiller storage - 4. Q.uality A.ssurance - 5. Gov tax - 6. Load out - 7. Cartage - i. Total Cost per kilo - $4.60 ii. Transport to retailer - $0.10 iii. Sale price per kilo - $6:20 iv. Gross Profit per kilo - $1.50 *NOTES* Hide prices fluctuate. D. RETAILER: i. Cost per kilo - $6:20 iii. Sale price per kilo - $8:50 - $12:50 iv Gross Profit per kilo - $2:30 - $6:30 Agent fees: Where exactly do agents come into the picture? Gov taxes: Which ones? .. re Fuel levies: Q1. Is brewing your own BioFuel a potential solution? Q2. Is it sustainable in terms of food security for farmers to brew their own? Q3. If sustainable, will there be a knock on price increase in grains? RE THE MEAT INDUSTRY: !Q4! What about butchering by new migrant workers on a minimum wage at the abattoir with internet orders direct from the consumer and their own fleet of cold storage delivery trucks? Perhaps pensioners and house hubbies and wives could tool up with a "Green Saver" freezer unit and order a bulk meat pack per month. Retirement Villages in particular come to mind. Posted by DreamOn, Monday, 15 February 2010 3:58:42 PM
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Coles and Woolworths will be able to buy meat cheap in countries where there are government subsidies for farmers or there is dumping and then flog it off at premium prices in Oz. Doubling the price between (say) the US and Oz makes for a tidy profit.
Some 'free trade agreement' the federal government has thrashed out with Uncle Sam, US farmers get subsidies and Oz farmers do not. Unlike every other country world-wide, Australia is placing no value on its clean record as a meat supplier. Again to quote the Australian Beef Association from the same article (see my post above): '"Australia has made much of being free of diseases like BSE, FMD, Blue Tongue and Scrape and has gone further to promote its clean image with the introduction of the costly National Livestock Identification Scheme. “By allowing in beef from BSE-affected countries we are relinquishing this much-touted selling advantage,” the association said.' Of course the federal government has worked out (with the help of the US State Department no doubt) that there is only a slight chance of Mad Cow disease being introduced through meat imports, but why take the risk at all just to increase the profits of global corporations? Posted by Cornflower, Monday, 15 February 2010 5:58:11 PM
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*CornFlower*
Indeed it has all of the hallmarks of double standards when I think about all the fuss the Customs goons make at the airport over bringing food in, and yet, the guvment is apparently quite happy to risk BSE. I quite agree with you, being disease free is a big asset. And of course, the organics niche growing and profitable. Simply put my suggestion is this. If both the red and the blue of politics are quite prepared to trash the local meat industry then don't vote for them. That of course may mean not voting for the nationals as well. .. Here's one for the Home Brewers, who are hopefully cognisant of the fact that distilling Spirits (Ethanol) is illegal pursuant to Australian law without a commercial lisence. http://www.moonshine-still.com/ Wikipedia is a good source for knowledge in this area, say for example required nutritional supplements for healthy yeast organisms. .. BIOFUELS: http://en.wikipedia.org/wiki/Biofuel (ref Green Diesal) .. Thinking again about Bio Fuel, and I note a protest just relayed by BBC from some AID group who asserted that Bio Fuel production is leading to hunger in the 3rd world. .. Well, the 3rd world must come to terms with family planning and choose of their own volition to change their nonsensical attitudes to family in favor of embracing a wider concept of same which does not necessarily include relatedness by blood. (A friend used to say: " ... whilst blood may be thicker than water, Spirit is thicker Still ... ) So, about 5L's of brew will give about 1L of Ethanol (someone please do correct me if I'm incorrect on that one) And if U grow yr own grain, well, U only need approx 2-3kg of rice or a equivalent amount of green waste or other (see wiki article above) to produce 1L of ethanol. Now, on fossil fuel my 125 Suzuki goes nearly 150km's on 3L. So, what does that make it for BioFuel? 50k's for less than 0.50c at the base of the economy? How's that look for the cockies ey? Posted by DreamOn, Monday, 15 February 2010 7:28:10 PM
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The above link is one of many about the closure of the Young Meatworks, one of the largest employers in the town, also employing many Afghan refugees. The closure is purported to be due to high sheep prices and the effects of the drought, acknowledging as the article says that the meat industry is cyclical.
More and more we hear about regional business like this closing down which has far greater impact on a small town than in the cities.
In the current financial situation, why aren't governments doing more to keep these sorts of businesses going? There are great benefits to supporting regional employment.
The job losses in Young are estimated to be about 300, the Geelong Ford Factory estimated losses would be around 400 without Government financial assistance. Why is there such inconsistency or disparity with regards to industry assistance in this country?
Why is the car industry subsidised and seen as crucial while other industries are left to go under.
Why don't we own our own LNG resources? While foreign ownership creates some investment and taxation windfalls for Australia, much of the investment ends up flowing overseas. Most of the resource sector in Australia appears to be owned by OS companies (much of it US, Chinese, Dutch).
Isn't there some case for government owned or financed industries if the spoils will have a positive flow on effect for Australia? From an ideological viewpoint isn't it better for nations to have control over their own resources particularly in developing nations who desperately need the benefits that ownership of resources can bestow.
If both major parties are willing to accept Chinese investment, which means owned by the Chinese Government, why do we balk at the idea of Australia (the Australian people) owning a project like Gorgon.
Can we do better overall within the industry sector?