But some in the industry, the NSW Farmers Association in particular, say another review will only delay work to solve market power problems in the industry.
The ABARES review will examine whether there is evidence of market failure within the industry, and if so, potential actions that could be introduced, as applicable.
It will also consider information contained in recent inquiries into the industry, as well as examining the industry’s evolution over time.
As part of this process, ABARES will seek information and evidence from stakeholders via Have Your Say, in response to an information paper to be released shortly.
ABARES will also conduct stakeholder engagement across all major parts of the chicken meat industry.
A draft report will be provided for stakeholder review and comment by mid-2025, with a final report to government due as soon as practicable thereafter.
ABARES executive director Dr Jared Greenville noted the importance of the review, and the chicken meat industry to Australian agriculture and consumers.
“The poultry industry is a vital and growing component of Australia’s agricultural sector with production value expected to reach a record $4.2 billion this financial year,” Dr Greenville said.
“ABARES is well placed to undertake this review as an independent economic research body within the Department of Agriculture, Fisheries and Forestry and we look forward to engaging with all parts of the industry.”
The NSW Farmers Association last year called on a mandatory code of conduct to protect chicken meat farmers from market power abuse at the hands of processors.
It came on the back of a year-long investigation into the poultry meat sector, conducted through a joint project with the National Farmers Federation and the Australian Chicken Growers’ Council.
The review was government funded, and NSW Farmers principal economist Sam Miller said further research into the industry would not produce any surprises.
He said it was time for reform, not reports, to address the significant market power misuse impacting poultry farmers across the nation.
“We’ve already conducted extensive investigations into the poultry meat supply chain, and the findings were crystal clear – processors are giving growers the raw end of the deal, and it is forcing them out of the industry,” Mr Miller said.
“There is little to no choice in processors, growing contract terms are unfair, and there is a deliberate undermining of collective bargaining efforts within the supply chain.
“This sector doesn’t need another report, it needs real reform to address these problems before more farmers are forced to shut up shop, and there’s not enough Aussie chicken for those budget-friendly family meals we all rely on.”
To improve conditions for poultry farmers into the future, Mr Miller said it was imperative a mandatory code of conduct was established to govern growers, processors and supermarkets operating within the poultry industry.
“Having a mandatory code of conduct enforced by the Australian Competition and Consumer Commission would support fair trading as well as best practice policy and regulation of supermarkets and processors within the poultry meat industry,” Mr Miller said.
“For poultry farmers, this code could mean more power to negotiate and better enforceability of contracts in the chicken meat supply chain ‒ meaning a fairer deal at the farm gate.
“With the cost of living the single biggest election issue, politicians must commit to implementing this code of conduct quickly to secure the future of this important family dinner staple.”
The terms of reference of the new ABARES review can be read at www.agriculture.gov.au/abares/research-topics/chicken-meat-supply-chain-review.
12°C