Are Woolworths Telling Porkies?
AUSTRALIA - The Red Meat Action Group of Western Australia have said that it was with great dismay that they read the submission by Woolworths to the ACCC Grocery Enquiry and their letter of response to the Australian Beef Association.
6 June 2008
2 minute read
They claim that both documents by Woolworths contain blatant fabrications of the facts and are grossly misleading.
According to them the suggestion that Woolworths make just 3% profit on their meat operations in WA is nothing short of telling porkies'.
Consider:
According to the meat group an inspection of Woolworth's supermarket display cabinets will reveal few if any beef cuts below $10.00/kg yet in their submission they talk of meat selling for $10.00/kg on average - even their mince sells for well in excess of $10.00/kg."Woolworths DO NOT pay $4.80 for beef at the farm gate regardless of whether it is grassfed or grainfed. Try $3.10 /kg in Nov-Dec 2007 and Jan 2008 in WA. Nor do Woolworths pay for transport to the abattoirs; this has never been the practice in WA. The costs attributed to in store preparation and display is more than double the cost of slaughter and boning - quite incredible.
"Adding to the illusion, is the claim of lower prices YET the same cuts from grain fed Australian Beef sells for less in Japan than in Woolworth's Australian stores. How could this be? Is anyone suggesting that the Japanese make less than 3% on their meat sales?
"Finally, the claim that no old cow product is sold by Woolworths is nonsense and they know it."
The group says that Woolworths should try extending their Drought Relief help to farmers for more than just one day ' by paying farmers a Fair Price that reflects the cost of production every day
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