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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-10-15 Daily Xml
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Farmers

358 The Hon. S.L. GAME ().28 August 2024). Can the Minister for Primary Industries and Regional Development advise:

1. What is the government doing to protect mum and dad farmers from exploitation 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 the code of practice for the beef cattle industry in South Australia similar to what the government introduced to regulate the dairy market?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I am advised:

We know that over 95 per cent of farms in Australia are family owned and operated to this day, however our South Australian producers have established sophisticated businesses, they utilise cutting edge technology and precision techniques, as well as sustainable and data-driven methodology to ensure they are adapting to the changing demands of food and fibre production.

The beef cattle industry in South Australia plays a crucial role in the state's economy, providing employment opportunities, supporting local communities, and contributing significantly to export revenues. There are more than 2,800 beef producers in South Australia who generated revenue of $1.86 billion in 2022-23.

These beef cattle farmers are known for their commitment to sustainable and ethical farming practices, ensuring high-quality beef production while maintaining the health of their land and animals. Our South Australian premium beef products are highly regarded both domestically and internationally.

The Department of Primary Industries and Regions works across all areas of agriculture to advance the prosperity and sustainability of South Australia's primary industries and our regional communities.

In 2024, cattle prices in South Australia have experienced fluctuations influenced by several factors. On average, prices have been impacted by high supply levels and international market dynamics. The Eastern Young Cattle Indicator (EYCI), a benchmark for cattle prices in Australia recorded by Meat and Livestock Australia, recovered from a low of 349c/kg in October 2023 to higher levels by the end of June 2024. Although still below the five-year average, strong export demand continues to support cattle prices in 2024.

Livestock SA is the peak body for grassfed cattle producers across the state.

In the summer of 2023-24, they ran a number of Red Meat Connects Communities' BBQs series across regional areas of South Australia to promote the exceptional products grown in SA, as well as discuss the challenging conditions and enduring strength of the industry. These events were supported by PIRSA as well as the SA Drought Resilience Adoption and Innovation Hub.

PIRSA initiated and runs Family and Business (FaB) mentor services available to help primary producers and regionally based agricultural business owners through free financial counselling, emotional wellbeing and counselling services and emergency recovery when needed.

Additionally, PIRSA runs, through Rural Business Support, the Rural Financial Counselling Service (RFCS) which has been supporting farmers and rural-related businesses by providing free and independent financial counselling to eligible farmers, fisheries, foresters and small enterprises experiencing financial hardship. These advisors are knowledgeable about the process and documentation required for application to the Commonwealth Farm Household Allowance, Regional Investment Corporation Loans, and any available PIRSA funding and grants.

The South Australian Small Business Commissioner is able to assist small businesses with advice and negotiations support on a range of contractual and other disputes.

There are existing codes of practice for the livestock industries in Australia, which have been established in collaboration with industry to maintain the welfare of livestock across the country.

In relation to codes of conduct relating to contracts and pricing, the Dairy Industry Code of Conduct is a mandatory code under section 51AE of the Competition and Consumer Act 2010 which came into effect on 1 January 2020. The code provides a fairer process for negotiating contractual arrangements between dairy farmers and dairy processors. It improves the balance in bargaining power between dairy farmers and processors. The code also includes dispute resolution and mediation processes.

The code is a result of extensive stakeholder consultation with dairy farmers and processors and introduced by the commonwealth Department for Agriculture, Fisheries and Forestry.

I encourage those in the cattle industry with an interest in fair and open industry negotiations to communicate with their state industry bodies regarding the opportunity to develop a code of practice for their industry.

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