Objective measurement supported by ACCC
09 March 2017
This week’s release of the Cattle and beef market study by the Australian Competition and Consumer Commission endorses the moves made by MLA to introduce objective carcase measurement technology throughout the industry, and supports MLA’s proposal that the data it produces should be shared for the benefit of the industry.
MLA’s proposal is to fast-track the adoption of DEXA objective carcase measurement technology across the red meat industry. This technology would pave the way for scientific measurement of saleable meat yield, future value based marketing and industry-wide productivity gains through processing automation, genetic improvement and data-based on-farm decision making.
The ACCC recommendations related to objective measurement technology are:
Objective carcase measurement should be prioritised
Recommendation 6: The introduction of objective carcase measurement technology should be prioritised by the industry and adopted by all processors in a consistent manner as soon as possible.
Objective carcase measurement technology will increase accuracy and transparency of value assessments. Appropriate auditing and verification systems will be needed to support the technology. The ACCC welcomes the moves made by MLA to introduce objective carcase measurement technology throughout the industry, as recommended in the Interim Report.
Objective carcase measurement data should be shared
Recommendation 7: Data produced from objective carcase measurements should be shared for the benefit of the industry. The data produced as a result of objective carcase grading will be of wider benefit to the industry if aggregated and shared. For example, producers would be able to measure their own performance against the rest of the industry and make any production adjustments necessary to achieve higher cattle grades and prices.
MLA will work through these and other relevant recommendations that are within its remit in consultation with industry (this includes the ACCC’s recommendations about market information), noting the ACCC’s view the Red Meat Advisory Council should be responsible for overseeing their implementation and monitoring compliance.
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