|
|
|
Cattle producers lose out on eartag competition
18 Aug 2003
Victorian cattle producers may be missing out on cheaper national livestock identification scheme tags because the State Government won't open up tenders for tag supply to competition. Allflex has held the contract since 1998, and extensions have enabled it to retain the $20 million subsidy monopoly until April 2005.
Rival companies want the chance to tender, which could bring down either the size of the subsidy or the price to the farmer.
The Department of Primary Industries claims a tender could increase the price of tags, because only two companies can supply NLIS-endorsed tags.
Leader tags' Bruce Dumbrell is bemused that the Government awarded an extension more than a year before its existing contract was due to expire, with no competitive tendering. By April 2005, another two companies (including Leader) will be able to supply NLIS-accredited tags. Leader would be selling unsubsidised new tags at $2.80 and recycled tags at $1.50 when it receives NLIS accreditation, prices which compare favourably with the $2.50 price of the current subsidised tags.
Leader wants farmers to be able to choose their preferred tag, and then the manufacturer bills the Government for the subsidy. Market forces would then determine which company becomes the farm sector's preferred supplier, a system which operates in other states. However, the Government wants to retain the current system, so it can use its buying power to secure cheaper tags for its mandatory NLIS scheme. Leader could live with that, Mr Dumbrell said, if was given a chance to apply.
Stock & Land, 16/8/03.
|
|
