Beef Cattle Industry

The Hon. S.L. GAME (15:16): I seek leave to make a brief explanation before directing a question to the Minister for Primary Industries and Regional Development regarding the beef cattle industry.

Leave granted.

The Hon. S.L. GAME: Australia's red meat and livestock industry makes a significant contribution to the Australian economy. The South Australian beef industry makes a crucial contribution to the state and underpins substantial economic activity in our regions. South Australia's beef industry faces several significant challenges. Firstly, there are nearly 240,000 fewer beef cattle in South Australia than five years ago, and some 140,000 fewer breeding stock. There are more than 2,700 beef cattle producing businesses in South Australia, with thousands more people employed across the beef supply chain.

Across Australia, average farmgate returns for beef production are lower than for other potential agricultural land uses, including cropping and sheep. A major issue facing the industry is the relatively small number of meat processors. These meat processors dictate the price farmers get for their product and this often results in smaller producers getting squeezed. If farmers don't accept the price they have few options to sell, if any. Major supermarkets have replaced the local butcher which is further reducing the options that farmers have. My questions to the minister are:

1. What is the government doing to protect mum-and-dad farmers from being exploited by processors unwilling to offer a fair stock price?

2. What protections are in place for cattle farmers experiencing predatory behaviour which affects their livelihood?

3. Does the minister support a code of practice for the beef cattle industry in South Australia, similar to what the federal government introduced to regulate the dairy market?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:17): I thank the honourable member for her question. I certainly agree that the cattle industry is an incredibly important industry for our state, both economically but also particularly for the jobs that it provides in our regions. In terms of the specific questions that the member has asked, as far as I am aware I don't recall anyone approaching me to suggest a state-based code of conduct. I am happy to have my office check to see if that is the case.

I have excellent relations with the peak industry body, Livestock SA, and meet frequently with them. As always, I am open to any suggestions that they might come up with. They can be investigated and discussed, and then see whether they are suitable for progression.