Australia's largest stock trading and investment forum Australia's #1 stock forum

Eh?,littleproud wants price controls, on red meat,what happened to the free market?, page-4

First 4 Last

Share
Profile

Follow
Tarvold

28,079 Posts.

1368

12/11/23

09:15

Post #: 70851924
Share

Originally posted by enoggera: ↑

The domestic meat price is largely controlled by export prices . Many do not realise that both Coles & Woolworths are huge exporters of meat. Coles has had export sales in excess of Half a billion $ a year .Most abattoirs are export these days with only a few small works domestic only. So when Stock are processed the product is sent to whatever market shows the best return. Put a lid on domestic price and it will go on a boat , simple.Most supermarket buyers have forward contracts for lamb in particular and in the past that has kept domestic prices on an even keel , however with the recent slump in livestock values they have been stuck with these forward contract prices , that is coming to an end and we will soon see in store lamb prices ease .Cattle supply for supermarkets is mostly feedlot sourced and these are also subject to similar contract restraints . Hope this provides some clarity.

Expand

The alternative is to to remove the protectionism that bans the import of unprocessed meat into Australia from other countries such as Argentina.
6 Upvote

Reply

Top Stories

GDM

Great Divide 'rapidly evolving' into commercial miner with first Challenger pour

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

BRU

Buru sinks -8% on adjusted Rafael Gas Project timeline aimed to 'reduce risk'

Unemployment expectations correctly called today's 4.3% rate

ASX Market Close: Pretty boring day, but we're back in the 8,600s

First 4 Last