Australia's competition watchdog wants to know more about the sale and purchase of cattle at saleyards, especially the independence of buyers.
The issue is listed in a paper released on Thursday by the Australian Competition and Consumer Commission, which has outlined the topics it will cover in its study of the cattle and beef market.
"The ACCC is aware of concerns about the independence of buyers at saleyards, particularly in instances where saleyard attendees are bidding on behalf of multiple buyers," the ACCC said.
"The ACCC would like to understand more about saleyards and the conduct of buyers in order to assess the competitiveness and efficiency in the supply chain."
The competition watchdog is calling for submissions on potential collusion at saleyards.
The ACCC recently investigated allegations that nine meat processors collectively boycotted the prime cattle sale at the Barnawartha saleyard near Wodonga in northern Victoria on February 17, 2015.
But the ACCC found no evidence that the processors had agreed not to attend the sale.
The ACCC also wants to know more about the influence that retailers and processors have on prices paid to farmers for livestock.
The ACCC said considerable concern had been raised during a Senate inquiry on consolidation in the red meat processing market, as well as during its own probe into the relationship between retail beef prices in Australia and live weight and carcass prices in Australia and overseas.
"In particular, submissions during the inquiry pointed to the difference in live weight prices received for cattle in the United States compared to live weight prices received by farmers in Australia," the ACCC said.
"The ACCC therefore considers it is important to understand more about the interaction between export and domestic cattle prices, beef prices and the influence that retailers and processors have on those."
Other issues to be covered by the ACCC study include bottlenecks in the supply chain; differences in bargaining strength between cattle producers and buyers; the transparency of carcase pricing and grading methods; and the share of profits among the cattle and beef production, processing and retailing sectors.
The ACCC hopes to complete its study and release a final report in late November 2016.
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