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Carbon tax burden sweeps across the beef supply chain
Beef Central list the areas hit which include
With July’s monthly creditor accounts now lodged in many businesses, the true impact of the Federal Government’s insidious carbon tax is being calculated for the first time across the red meat supply chain.
- Retail Butchery;
- Livestock transport;
- Cold Storage and Distribution;
Brisbane butcher Luke Stefanetti told yesterday’s Courier Mail (Link) the impact of the carbon tax had made it more difficult for him to compete with the major supermarket chains.............. the tax is eating into his hard work. He said the price of wholesale meat had increased, and blamed the new tax as the main cause. The tax was impacting on refrigeration and transport costs, and being at the ‘bottom of the chain’ meant he was being slugged with the increases by his suppliers.
Transport Operator Fraser Transport points out that diesel fuel does not attract the carbon dioxide tax for the first two years, however "At the current rate of $23/t, the carbon tax will cost Fraser’s more than $500,000 a year when diesel users are included from July 1, 2014."
"Over recent years, Fraser’s has had to upgrade its fleet in order to meet the Federal Government’s carbon emission standards for diesel engines.
“That’s had an enormous effect on our industry,” Mr Fraser said.
“Most significant livestock transport operators are now running the ‘new technology’ engines, which use more fuel, but supposedly produce lower emissions. On top of that, they require bigger cooling systems, making the trucks themselves heavier, so there are operational compromises involved,” he said."
A Monster in the Fridge
The cost of refrigerant gas is tripling with the carbon price, and that’s going to hit any business that cools anything, says Ross Greenwood (Telstra Business - Link)
Everyone knows that the carbon tax, which came in on July 1, will mean we’ll pay more for electricity. But there’s a hidden cost with this carbon tax. It’s not necessarily the price of carbon, which at $23 per tonne is way above the world price anyway. It’s not that.
It’s refrigeration coolants – which are classed as synthetic greenhouse gases – and it affects everything that needs to be cooled in this country. Everywhere there’s a fridge – a pub, a bottleshop, a butcher’s shop, a supermarket – costs are going to rise. And the tax on these refrigerant gases is so much more than the $23 per tonne for carbon dioxide.
While not directly exposed to the carbon tax as a ‘Top 300’ emitter, Brisbane’s Australian Country Choice beef processing plant at Cannon Hill is facing a $500,000 additional annual cost burden in the form of higher electricity charges, alone.
Read more - including a 'double-dip' on the carbon dioxide tax burden at Beef Central.