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The Forum > General Discussion > It won't work

It won't work

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Iin response to the Indonesian descicion to cut cattle imports, the governments proposal,that being to build a central qld abb, won't work because they simply won't find and or hold staff.

This is an industry that already struggles to make money, despite paying some of the lowest wages on offer.

Combine this with the competition they will have from the mines, and the end result will be a white elephant.

The result will place all this meat on the domestic market, only good for mince, sausages, burgers and small goods, as such, the returns will not be there and, given the high dollar, the export market won't be the answer either.

The export trim market comes from our lower grade beef, of which they retain two cuts for domestic meat, budget meat, with the remainder being exported.

These cattle are lower in grade than our budget meat.

I hope they do their math before wasting any more funds.

This is simply a case of an Idustry simply shooting itself in the foot, by sending breeding cattle to these countries.

I am afraid this is the begiing of the end of this industry.
Posted by rehctub, Saturday, 17 December 2011 6:48:57 AM
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While I am unsure how much of this problem came about because of the recent slow/poor government reaction to that film.
I do know producers knew long before that Indonesia had warned, it was looking to be self sufficient.
In fact cuts had been put in place.
Also, I understand some will, regardless of truth blame this government for the whole problem.
I find that decent in to a place truth has less value a reason to be concerned.
Cattle have like the sea risen and fell, due to issues unrelated to production.
Indonesia may well no reach its target, import in normal numbers for more years than planned.
These cattle will find a home a market, it is said it, the trade will die.
What trade? the whole export beef?
Farmers and exporters are not about to lay down, this market is/was not the only one.
The price of this beef, landed in Indonesia, on the table, if available here for bulk purchase would move many.
Lean beef sausages?
At the right price?
50 kgs twice a year thank you.
Posted by Belly, Saturday, 17 December 2011 12:49:34 PM
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Belly, I don't blame the government for this, however I am critical of how they handled the issue, but hey, it's not as if it matters with them, as they cat get anything right.

As for the future, th answer is not in introducing this meat to the domestic market.

Although it appears that meat prices are high, real meat prices are still where they were ten years ago, about 180 to 220 cents, live.

The reason for the prices is the production cost.

Even if this meat hit th market at 150 cents, retail prices won't drop much as processors are doing it tough.

This is an industry that has seen it's day.
Posted by rehctub, Saturday, 17 December 2011 2:44:18 PM
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I disagree, first with your hint this government can not get anything right.
That says more about you.
The Industry has faced challenges many times, it does now.
This complex issue remember is about live exports to Indonesia, other markets take some live cattle.
Challenges include America returning to markets after its mad cattle problems.
Argentina And Brazil are building a real place in the market, after once being barred by cattle diseases.
We export to Japan on quality they want our best.
But the world food shortage may open other opportunity's.
I do in part blame the government.
Not for this, but for not looking closer, even now at mounting evidence militant Vegetarians crafted and paid for actions to take place in front of Cameras.
Posted by Belly, Saturday, 17 December 2011 4:52:51 PM
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Belly, the myth that our best meat goes to Japan is just that, a myth.

The meat they buy, most Aussies wouldn't eat as it is to marbled. In fact, it is only recently that the likes of Wagyu are becoming popular here in AUs, although, a large portion of Wagyu sold here is actually down grade, either because it's female or, it did not make the marble score.

When I sold Wagyu, I only sold 5 to 7 score, but I stopes selling it in the ed as I was undercut by the shonks, selling lower down grade for less than I paid.

These live export cattle are only good for the mince trade, and that market is pretty much full.

Any preasure on that market may actually see beef prices increase, rather than decrease.
Posted by rehctub, Saturday, 17 December 2011 7:46:12 PM
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Rechtub it is my view that meat is what Japanese want and value.
The price tells us how much it is valued.
Once we too wanted it much the same.
No easy task the market currently may look bad.
But it has before, in 1975 you could by a cow and calf, quality eating , for less than a bantam hen and chicks.
You will be aware our beef exports started with cracker cows, ex milkers and black baldy cross breed exported to America for? hamburger mince.
This morning a poll says 63% blame Gillard for this.
Unfortunately,most likely,they are the same city dwellers who saw the propaganda film and wanted the trade ended forever.
I think these folk will continue to produce cattle and sell them,with a little help.
Posted by Belly, Sunday, 18 December 2011 4:42:05 AM
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