Alliance earns 40 dollar/head premiums

摘要

Not content with being socalled 'price-takers', a small group of Queensland beef producers have banded together to take control of marketing their cattle - and earn significant premiums. In fact, the 32 members of NBC Beef Pty Ltd estimate they earnan additional 40 dollar/head across the board through the alliance. This premium is based on comparable returns through locally available markets as well as the consolidated loading available to group members where compliance to specifications increasesrates by approximately 20 per cent. Put simply, such premiums are largely thanks to the old adage of strength in numbers. As one of the founding directors and the Central Queensland group's livestock co-ordinator, Darren Kent, explains: "It comes down to economies of scale and the fact we can guarantee the processor bulk, even lines of the right article. "The biggest single cost to the processor is cattle who don't meet specifications." However, they stop short of marketing their own brand, preferringto concentrate on what they know best - producing quality beef.