Minister reveals shocking truth about Coles and Woolworths' red meat prices
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As the festive season approaches, Australians look forward to the traditional Christmas roast.
However, the high cost of red meat at Coles and Woolworths has left many consumers feeling the pinch.
The federal government has issued a stern warning to these supermarket giants, urging them to reduce the price of red meat, as it 'doesn't pass the pub test' that Aussies are still paying up to $20 per kilo for beef mince and $15 for a steak.
The issue has been simmering for months, with farmers questioning why consumers are still paying high prices for meat, even as livestock prices have plummeted.
In response to mounting political pressure, both Coles and Woolworths announced they were reducing prices on some red meat products by more than 20 per cent.
However, Agriculture Minister Murray Watt has stated that this is not enough.
The disparity between what farmers receive for their livestock and what consumers pay at the supermarket has raised eyebrows.
'It doesn't pass the pub test that Australians are paying so much more for meat at the supermarket than farmers are getting for their livestock,' Mr Watt told the media.
He added: ‘I’ve been making clear for a couple of months now that the retailers should start dropping their prices. I’m glad David Littleproud and the Nationals have caught up and are now backing my calls. And I’m really pleased to see that Woolies have begun to cut the price of lamb, but we need to see more—from them and the other big supermarket chains.’
The Senate is expected to establish an inquiry to examine alleged 'price gouging' by the supermarkets, with the first hearings expected in early 2024.
This comes after both Coles and Woolworths recorded profits of over $1 billion this year. However, the Nationals argued that the Senate inquiry would take too long and won't go far enough.
They have reiterated calls for the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into meat prices.
The cost of living crisis is a pressing issue, and the high meat prices are adding to the burden on Australian families.
'Families need action immediately,' said Mr Littleproud. 'They deserve to see transparency in prices, especially given the enormous profits of supermarket giants.'
Meat pricing is a complex issue, with many factors contributing to the final cost.
According to Meat & Livestock Australia (MLA), it typically takes about eight months for lower livestock prices to filter through to the retail level. Even then, retail prices have historically remained much more stable than the wildly fluctuating livestock market.
The National Farmers’ Federation (NFF) has welcomed the announcement of the Senate pricing inquiry.
'We know what Australians are paying at the checkout, and we know what we’re receiving as farmers—but who clips the ticket in the middle is shrouded in secrecy,' NFF President David Jochinke stated.
The beef industry benchmark, the Eastern States Young Cattle Indicator (EYCI), fell more than 60 per cent from $9.06 per kilogram in January to a low of $3.49 in October, according to MLA data, while sheep prices fell around 80 per cent.
This rapid plunge came as farmers rushed to offload their animals due to a sudden shift to dry weather, leading to an oversupply of animals in sale yards.
The high cost of meat is not just a result of supermarket pricing. Bottlenecks in the abattoir sector have led to long processing delays, further driving up prices.
The export market also impacts domestic retail prices, with Australia exporting 60 per cent of its lamb and 73 per cent of its beef.
Despite the complex factors, the high cost of meat at Coles and Woolworths remains a contentious issue.
As the festive season approaches, the call for fairer meat prices grows louder. The government's review of the ACCC’s Food and Grocery Code of Conduct is already underway, and it is hoped that this will pressure the big supermarkets to offer fair prices on their shelves.
In response to criticism about high meat prices, Coles and Woolworths have argued that they are paying fair prices to their suppliers.
They also point out that the retail price of meat is not determined by the market price of livestock alone. Other costs in the supply chain also contribute to the final retail price.
A Coles spokeswoman explained: ‘While livestock prices have gone down, other costs in the supply chain have gone up, including transport, processing, packaging, and retailing the product on shelves’
Meanwhile, a Woolworths spokeswoman stated: ‘We don’t buy cattle from sale yards, so the low sale yard prices being quoted don’t reflect the reality of our supply chain. We’re currently paying our long-term suppliers more than the industry market indicators for beef.’
What do you think about the cost of meat at Coles and Woolworths, members? Have you noticed a difference in your grocery bill? Share your thoughts in the comments below.
However, the high cost of red meat at Coles and Woolworths has left many consumers feeling the pinch.
The federal government has issued a stern warning to these supermarket giants, urging them to reduce the price of red meat, as it 'doesn't pass the pub test' that Aussies are still paying up to $20 per kilo for beef mince and $15 for a steak.
The issue has been simmering for months, with farmers questioning why consumers are still paying high prices for meat, even as livestock prices have plummeted.
In response to mounting political pressure, both Coles and Woolworths announced they were reducing prices on some red meat products by more than 20 per cent.
However, Agriculture Minister Murray Watt has stated that this is not enough.
The Agriculture Minister warned the supermarket giants about the price of their red meat. Credit: Rickie-Tom Schünemann/Pexels
The disparity between what farmers receive for their livestock and what consumers pay at the supermarket has raised eyebrows.
'It doesn't pass the pub test that Australians are paying so much more for meat at the supermarket than farmers are getting for their livestock,' Mr Watt told the media.
He added: ‘I’ve been making clear for a couple of months now that the retailers should start dropping their prices. I’m glad David Littleproud and the Nationals have caught up and are now backing my calls. And I’m really pleased to see that Woolies have begun to cut the price of lamb, but we need to see more—from them and the other big supermarket chains.’
The Senate is expected to establish an inquiry to examine alleged 'price gouging' by the supermarkets, with the first hearings expected in early 2024.
This comes after both Coles and Woolworths recorded profits of over $1 billion this year. However, the Nationals argued that the Senate inquiry would take too long and won't go far enough.
They have reiterated calls for the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into meat prices.
The cost of living crisis is a pressing issue, and the high meat prices are adding to the burden on Australian families.
'Families need action immediately,' said Mr Littleproud. 'They deserve to see transparency in prices, especially given the enormous profits of supermarket giants.'
Meat pricing is a complex issue, with many factors contributing to the final cost.
According to Meat & Livestock Australia (MLA), it typically takes about eight months for lower livestock prices to filter through to the retail level. Even then, retail prices have historically remained much more stable than the wildly fluctuating livestock market.
The National Farmers’ Federation (NFF) has welcomed the announcement of the Senate pricing inquiry.
According to Meat & Livestock Australia (MLA), it typically takes about eight months for lower livestock prices to filter through to the retail level. Credit: tommao wang/Unsplash
'We know what Australians are paying at the checkout, and we know what we’re receiving as farmers—but who clips the ticket in the middle is shrouded in secrecy,' NFF President David Jochinke stated.
The beef industry benchmark, the Eastern States Young Cattle Indicator (EYCI), fell more than 60 per cent from $9.06 per kilogram in January to a low of $3.49 in October, according to MLA data, while sheep prices fell around 80 per cent.
This rapid plunge came as farmers rushed to offload their animals due to a sudden shift to dry weather, leading to an oversupply of animals in sale yards.
The high cost of meat is not just a result of supermarket pricing. Bottlenecks in the abattoir sector have led to long processing delays, further driving up prices.
The export market also impacts domestic retail prices, with Australia exporting 60 per cent of its lamb and 73 per cent of its beef.
Despite the complex factors, the high cost of meat at Coles and Woolworths remains a contentious issue.
As the festive season approaches, the call for fairer meat prices grows louder. The government's review of the ACCC’s Food and Grocery Code of Conduct is already underway, and it is hoped that this will pressure the big supermarkets to offer fair prices on their shelves.
In response to criticism about high meat prices, Coles and Woolworths have argued that they are paying fair prices to their suppliers.
They also point out that the retail price of meat is not determined by the market price of livestock alone. Other costs in the supply chain also contribute to the final retail price.
A Coles spokeswoman explained: ‘While livestock prices have gone down, other costs in the supply chain have gone up, including transport, processing, packaging, and retailing the product on shelves’
Meanwhile, a Woolworths spokeswoman stated: ‘We don’t buy cattle from sale yards, so the low sale yard prices being quoted don’t reflect the reality of our supply chain. We’re currently paying our long-term suppliers more than the industry market indicators for beef.’
What do you think about the cost of meat at Coles and Woolworths, members? Have you noticed a difference in your grocery bill? Share your thoughts in the comments below.
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