G.POL.1505 - Price Transparency
| Project start date: | 20 September 2015 |
| Project end date: | 06 June 2016 |
| Publication date: | 06 June 2016 |
| Project status: | Completed |
| Livestock species: | Sheep, Goat, Lamb, Grassfed cattle, Grainfed cattle |
Summary
The industry issues portfolio provides support to Peak Industry Councils by commissioning and managing the development of industry policy research on priority issues.
The Cattle Council of Australia requested MLA assess options to increase price transparency in the beef supply chaie, including the benefits and costs of introducing mandatory price reporting arrangements in Australia, similiar to those operating in the United States.
The project review committee assessed consultants to undertake the task and awarded the contract to AgInfo Pty Ltd. Their task was to:
- Assessing the transparency of prices in the beef supply chain and identify any gaps in the market information requirements of grass fed cattle producers;
- Identify specific points in the supply chain where price transparency could be improved to the advantage of producers;
- Outline options to address any price transparency issues identified. Consider price reporting and competition regulation arrangements as they apply in the United States. Assess and advise on other possible mechanisms to improve price transparency.
- In consultation with the project management committee, identify preferred options to conduct a cost-benefit analysis focussed on potential changes to farm gate returns.
This report was provided to the project review committee. It was decided that further analysis on the costs and benefits of greater levels of transparency was required and that while the AgInfo report (GPOL 1503) had identified gaps in the availability of price information it was not clear what, if any, benefit would result in the provision of more information. Recommendations were required in addition to the Project G POL 1503 (Consultant AgInfo Pty Ltd) which provided a substantial analysis of whether there was a lack of price transparency in the Australian red meat chain and where there was great price transparency.
This project therefore resulted in further analysis of the price transparency issue and recommendations in relation to the question of whether full price transparency would result in measurable outcomes to farmers.
