![]() ![]() Given current pricing policies, that figure may in fact be even larger, a domestic market watcher suggested. With Woolworths currently accounting for 34.1pc of domestic beef sales across Australia, and Coles 24.6pc (Nielsen Homescan survey), it’s reasonable to assume that the two combined account for almost 60 percent of all retail beef mince sales across the nation. “At $5/kg, it’s cheaper than buying petfood for my cat,” he said. “At $5 a kilogram, it’s cheaper than buying petfood for my cat” You could easily add another $1 to $1.30/kg for the additional costs, so if there’s ever been a loss leader in Australian beef, we’re looking at it,” he said. ![]() “That does not include mincing, MAP packaging, distribution or shrink, let alone marketing. “It means that Coles and Woolies are tearing-up at least a dollar a kilo just on the wholesale purchase price, and their trim is fresh, not frozen,” the trader said. ![]() A leading export meat trader had frozen 85’s (perhaps a more direct comparison with what’s on the shelf in Coles and Woolies regular mince), on his screen this morning at $6.20-$6.30/kg. Last week’s Steiner Consulting imported beef market quote published by MLA had 90CL frozen trim/cow meat at $6.82/kg in Australian dollar terms, on the wharf in Australia. The retail pricing disparity becomes even more obvious when comparisons are made with current pricing levels for lean grinding beef being exported into the US and other international markets. Loss leader sacrifice might total $2.60/kg While major supermarkets were currently heavily discounting a number of red meat items, both beef and lamb, there were a lot of prices on other grocery lines that had gone up, to compensate, Mr Melrose said. It’s hard to comprehend how the majors will defend this sort of retail pricing, when cattle prices go through the roof, after it rains,” he said. “At the same time, cattle prices to the grower haven’t risen for years. It’s nothing but a predatory attack in independent butchers.” Mince can account for a very large percentage of overall meat purchases, and the figure is growing. “The fact that mince is such a high-volume product makes it even worse. “It’s a total loss leader being applied by the major supermarket groups, and in my opinion it amounts to predatory pricing,” Mr Melrose said. That’s before the butcher’s costs, ranging from refrigeration to wages, rent other fixed costs, or any retail margin.” ![]() Butchers would be paying up to $2/kg more for raw material to produce equivalent mince, even before it gets into their coldroom. “They’re not doing the right thing by the growers, and independent butchers cannot go close to matching that retail price,” Mr Melrose said. The move price-matches a campaign launched by Coles in July last year.įar from being a short-term campaign to clear a stock surplus, for example, both companies indicate the strategy represents ‘permanent, everyday’ prices, rather than one-off, short-term specials.įormer Australian Meat Industry Council national retail president, Kerry Melrose, said the move would appear to suggest that both Coles and Woolworths had placed a ‘death wish’ on the beef industry. Woolworths now sells its regular mince in 900 gram packs, for $4.50/pack. In consumer marketing like the example appearing here, Woolworths proudly proclaims that from today, it has halved the price of its regular mince from $9.99/kg to $5/kg. The question is again being asked as the nation’s largest retailer, Woolworths, today launches a $5/kg mince campaign to customers, matching an identical offer that’s been in place for some time from major rival, Coles. IS THE Australian beef industry being laid waste by corporate supermarket retailers in their deadly quest for market share and more customer visits? ![]()
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