Vol. 437 No. 6
472 Mr. Leonard asked the Minister for Agriculture, Food and Forestry if, in view of the statement emanating from the beef industry recently concerning the low operating margins on sales, he is prepared to have a study carried out on the processing and marketing of beef.
I believe it is important that the operating margins in the beef industry are sufficient to remunerate the substantial capital investment in meat plants and to fund the research and development and marketing activities which are necessary for the proper development of the industry. I am aware that the operating margins available to the industry in recent months have been lower than what the industry would ideally like but conclusions on the long term direction of the industry should not be based on experience over a relatively short period. In any event, I understand that the statement referred to by the Deputy indicated that its author is prepared to take a longer term view. The Deputy will be aware that the beef industry has been the subject of numerous reports over the years and I am not convinced that a further report is either necessary or desirable at this time.
