The decision follows a recent inquiry by the Economic Regulation Authority (ERA) which recommended the Act should not be continued. The Act requires that its effectiveness is reviewed every five years, and should only be continued if its continuation can be justified.
The Act was introduced in 1977 as a transitional measure to improve the stability of a fledgling chicken meat industry undergoing rapid expansion. It allowed for the establishment of a committee to facilitate collective negotiations and determine an average fee for service to be paid to producers.
“I consulted extensively with industry in considering the authority’s report,” Mr Redman said.
“The Act served its purpose well during the late 1970s and ‘80s, but it is now time to move forward.
“The ERA inquiry found that chicken meat production in Western Australia has stagnated even though demand continues to grow.
“In recent years, the gap between production and demand has been met by interstate imports.
“Strong demand for chicken meat presents a major opportunity and the State Government will assist the WA industry in taking advantage of those opportunities.”
Producers previously covered by the Act will have an option to pursue collective bargaining authorisation through the Australian Competition and Consumers Commission.
The Department of Agriculture and Food is also planning an industry forum to outline its plans to support industry and clarify the role government can play to help producers remain profitable and take advantage of future opportunities.
“The department will continue to work with the sector to help the State’s chicken meat industry grow,” the Minister said.
“This includes examining the establishment of new hatchery, breeder and processing facilities and assisting growers with issues such as waste management and access to low-cost bedding materials.
“I look forward to a strong collaborative approach with industry in growing the chicken meat industry.”
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