While our farmers once again show they are price takers, not price makers, the retailers are in the same boat.

While many must be thinking, if farmers are receiving rock bottom prices for their cattle, why on earth am I still pay full price at the shop/checkout.

The answer is quite simple, it's called costs.

You see in the meat industry, the first and last handlers are the ones who take the hits, while everyone in between, from stock handlers/agents, trucking drivers/companies, to process workers have enjoyed heathly pay increases, while both the farmers and the butchers are the ones carrying the load.

I say this because while I know cattle prices are way down, I also know that butchers are still paying high prices for quality meat and, their costs have literally gone through the roof in the past ten years.

So the next tine you see quality rump Steak at $22 per kilo, be assured you're not being ripped off by the butcher/supermarket as they are doing it pretty tough as well.

Butch,

You make some valid points, but I wonder how many people realise that the best money cattle farmers have been getting in recent years (up to the start of the drought, as it's been way downhill ever since) is around $2/Kg live-weight (on the 'hoof') or $3.40/Kg carcase-weight (on the 'hook'), and that's for prime 'vealers' - year after year - while all production costs have gone up and up (from 80cents/Lt to $1.60/Lt for diesel, $230/tonne to around $400/tonne for 'super' - and so it goes for drenches, vaccines, vet bills, machinery maintenance, herbicides, pasture seed, electricity, and wages, as well as ordinary shopping at the supermarket, clothing store, doctor's surgery or chemist shop.

So, how many other 'businesses' suffer from a virtual (and 'lousy') 'ceiling' price for their merchandise while all of their input costs continue to rise at or above the rate of inflation?
(And, that 'ceiling-price' only holds when there isn't an over-supply - as occurs during any drought, when farmers have to reduce stock levels to remain viable or at least marginally cost-effective.)

No wonder farmers are an aging and dying breed - soon to be replaced by mega-farming conglomerates. After all, who needs the angst.

So, when a massive and prolonged drought hits, and ex-opposition leader John Hewson gets on his hind legs and derides any attempt by the Federal government to provide some greatly needed assistance to those hardest hit, well, I just get mad, and say to myself "why doesn't that twit just go away". (Didn't he lose the un-loseable Federal election by promising, prematurely, to introduce a GST?)

Good on Barnaby Joyce, and fie on all the naysayers (who want to have their cake and eat it - but with no heed for how it arrived on their plate).

When a bushfire, flood or cyclone laps at the door, people don't question what should be done, no! But, a drought, killing both stock and farmers, well, that's different isn't it - they should just have put more rain in the bank during the good times?)

It is not compulsory to bye the stuff. Chicken is the go, and better for you. Meat marbling is what put the consumer of beef off side, that sort of meat is for people that bye their meat by the ounce.

yes, I hear problems facing farmers.

I do my bit by buying a quarter carcass every 3-4 months directly from a farmer. Good quality meat from a farmer who knows his stuff, and much better sausages.

579, are you aware that a chicken is now produced in LESS THAN SIX WEEKS from when the egg is incubated.

Do you honestly believe that sought of force feeding doesn't come with problems.

If you do, then all I can say to you, is enjoy!

Chris, paddock to the plate, as it is know is a great idea, with the only down side, is it doesn't create jobs. But the farmer can seek much cheaper as the on costs are not there.

Il bet the prices will go up once this trend catches on a bit more.

Saltpeter, while a appreciate your stance, your figures are a bit out, as a high yield for cattle is 54%, making on the hook price $3.70.

The butchers are paying around $4.30 per kilo in store.

So even the wholesaler and processor is on thin ice as a total margin of 60 cents per kilo doesn't go far when split up.

I am more than aware of how chickens are produced without the B/S
A six week old chicken gives you a no9 bird, and they are not force fed. They have food and water available 24 hours a day. It is all in the breeding that gives them their growing ability.
Chickens are 8 weeks old to give a no 20 chicken.

The answer is quite simple, it's called costs.
rehchtub,
I'm more inclined to think of it as rip-off & extortion payments to those who don't lift a finger in any of it. Bureaucracy comes to mind.

rehctub,
It is the union driven high wages paid to workers.
The unions stuff everything.
Personally I think nothing should leave Australia until and unless the local market is satisfied.
You might get a decent piece of meat on your plate then.

Actually Cris, the blame also lies with the consumer, as we are often guilty of not buying a particular product/s when the prices are high.

579, most chickens are the same age. It's just that some eat more than others.

Yes that is true. I know the cost would be much higher if got same meat from a butcher.

And there is the employment aspect.