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 JR uses creative accounting to make his beef levy case 

JR uses creative accounting to make his beef levy case

11 Mar, 2010 12:24 PM
NSW beef processor and industry agitator Bindaree Beef appears to be using some creative accounting methods in its on-going war against beef industry bodies.

In advertisements placed this week in Rural Press newspapers, Bindaree Beef claims producers pay $10 a head in levies and that only 50c per $10 is spent on domestic promotion.

However, according to Meat and Livestock Australia $4.58 of the $5/head cattle transaction levy goes to MLA for marketing and research purposes.

On a national average, animals are traded 1.6 times, meaning that MLA's income from each beast is about $7.30, not $10, as quoted by Bindaree Beef.

MLA marketing general manager David Thomason also refuted the claims on the amount spent on domestic marketing.

He said a simple analysis of figures in MLA's publicly available plans show that $15.8m is spent on domestic marketing each year which represents 24 per cent of overall cattle levy dollars and 31pc of cattle levy marketing expenditure.

Bindaree Beef claims some $80m is collected in levies, almost $17m more than the actual figure.

Mr Thomason said the beef industry operated in a global market and that promotion in key markets was essential to drive overall demand for Australian beef and cattle.

"Every market provides important challenges but so too many opportunities," Mr Thomason said.

"Success in meeting those benefits every cattle producer through their livestock prices, whether they're supplying that particular market or not."

Mr Thomason said MLA was focused on tackling some major challenges in the domestic marketing arena this year, in particular the ongoing attacks by environmental activists on the beef industry's supposed impact on the environment.

As an example he cited research funded by cattle producer levies now demonstrates figures claimed that beef uses 100,000 litres of water to produce 1kg of beef were incorrect and was actually as low as 27 litres.

More balanced coverage in metropolitan media was occurring now as producer funded research was demonstrating the facts about the issue, he said.

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Date: Newest first | Oldest first
Maybe Rural Press need to think again about accepting Bindaree Beef's advertising if there are so many creative accounting issues?
Posted by Suspicious, 12/03/2010 8:27:30 AM, on Queensland Country Life
It is a pity that Mark Phelps does not extend the same "balanced coverage" towards JR.
Posted by Chris, 12/03/2010 11:12:49 AM, on Queensland Country Life
Dodgy accounting has been at the forefront throughout this whole dicussion. What was it, 30 companies ready to ship beef into Aus? 30thousand tonnes of product to be imported, 300,000 jobs? What's a few exaggerations when it comes to a media campaign? The numbers at Armidale vary from 400 to 1500. The motions are breeding like rabbits - 5 were "passed", now there are 7, the only one missing is world peace. But I reckon they will get around to that. Chris, you obviously weren't at Armidale for a "balanced" argument. Then balance and argument are not words that would relate to this issue.
Posted by angus, 12/03/2010 12:18:25 PM, on Queensland Country Life
Come on fellas, the real war here is to lift domestic consumption. Against the world, MLA has stood by their Meat Standards Australia scheme of grading while Australians eat 20% less beef today than they did 25 years ago. Only 12,500 of the nation’s 160,000 cattle properties are MSA accredited. “Supermarket squeeze picks rural pockets” – No, not 2009, SMH June 3, 2000. Read that again, 2000. Percentage of retail cost returned to Australian primary producers – Beef in 1970 41.6%; 2000 – 20.9%, Now, in 2009 – 27% to 30% while UK producers are on 50% and US producers are on 42%. The worst part of the story is that Australian consumers are paying between 25% and 50% more for their beef than their US counterparts. No more "in house" advertising campaigns - let's see some innovation and inspiration. No more monkey business.
Posted by CR, 13/03/2010 6:34:50 AM, on Queensland Country Life

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Bindaree Beef's JR McDonald.
Bindaree Beef's JR McDonald.
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