Wedoany.com Report-Apr 1, The Australian Agri-Research and Economic Services (ABARES) has initiated an independent review into the chicken meat supply chain to address potential market failures and explore actionable solutions. This follows the 2024 National Farmers Federation report, which emphasized the need for a mandatory code of conduct to ensure fairness in the industry. NSW Farmers has warned that the review will only delay efforts to solve the industry’s problems, highlighting that processors are taking an unfair deal from growers and forcing them out of the sector. Sam Miller, NSW Farmers’ principal economist, criticized the situation, stating that processors have unfair contract terms and that collective bargaining efforts are being deliberately undermined.
The review will examine whether there is market failure within the industry and consider potential actions to address it. ABARES plans to release an issues paper and a draft report for stakeholder feedback by mid-2025, with the final report due to the government shortly thereafter. Jared Greenville, ABARES executive director, emphasized the importance of the review, noting that the poultry industry is a vital part of Australia’s agricultural sector, with production expected to reach a record $4.2 billion this financial year.
The review’s terms include exploring regulatory and non-regulatory responses to market failures. NSW produces about 35% of Australia’s chicken meat, making it the largest state in the sector. Data from the Australian Bureau of Statistics shows a significant decline in the number of poultry farmers in NSW, dropping by 27% from 450 in 2011 to less than 350 in 2024, indicating a persistent downward trend in the industry.
Miller argued that further research won’t change the situation and that it’s time for reform, not another report, to address the market power issues affecting poultry farmers. He highlighted that processors have raw end-of-the-deal contracts and that collective bargaining efforts are being undermined, calling for a mandatory code of conduct to promote fair trading practices and improve bargaining power for growers.
The review is also seen as an opportunity to address the cost of living, a major election issue, and to ensure the sustainability of Australia’s chicken supply, a staple in daily life. Politicians are urged to act swiftly to secure the future of this vital industry.
