The Forum > General Discussion > low wages in australia
low wages in australia
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one of the agents in the know, mentioned at a public meeting, that
it costs the big boys 35c a kg to cart meat from East to West or
West to East. So even if that was paid by Govt, it would make
no difference to the realities of the WA marketplace.
They are that you basically have 3 processors that matter and
their buyers all know each other extremely well. Unless there
is an extreme shortage of livestock, as right now, they can basically
dictate their terms. For they are each specialised in different
areas, so there is hardly competition in the marketplace.
Processors are there to make a quid and I have yet to see them
pay a penny more, then they really need to. That just seems to
be human nature. So the only solutiion to that, is completely
different competition. The live trade provides it. They work
a bit like an airline, but a floating one. So much for the trip
per head. They realise that without farmers, they won't have a
business. The processors clearly took no notice of that in the
past. Farmers see what is going on in the saleyards. Even one
of the salyard managers recently mentioned on radio, that when
there was a tiny surplus of lamb, the buyers pushed the price down
to 2.80 a kg. He then heard farmers saying, "thats it, I'm selling
the flock and cropping the lot".
As for the lamb distribution business I mentioned, its functioning
in Perth and they are doing extremely well. Bugger all overheads,
great turnover and everyone wins. Yes, they are left with a dollar
a kg, a bit more if they do boned shoulders etc