Farmers are asking why their low returns haven’t resulted in similar savings for shoppers,with lamb cutlets now selling for about $43 a kilogram at supermarkets and rump steak $28 a kilogram.
Former Australian Competition and Consumer Commission chairman Alan Fels said retailers and other businesses in the retail supply chain were too slow to pass on low livestock prices,potentially shortchanging consumers,and called for a major inquiry.
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“Red meat prices should,but do not,reflect the fall in prices for farmers. This is of special concern at a time of deep cost-of-living pressures,” said Fels,who has been commissioned by Australian Unions to conduct a price-gouging inquiry.
“We need to look into the people in the middle,between the farmers and the consumers – that is:processors,retailers and others. Businesses are systematically slow to pass on price falls and quick to find excuses.
“We need transparency,and an ACCC inquiry would shine a light where required and expose any profiteering.”
Prices have started to come down at the supermarket. Analyst NielsenIQ Homescan recorded an 8 per cent fall in retail beef and a 15 per cent slide in lamb prices over the past four weeks.