Tough beef with Coles

One of the ironies about this is that Coles' ban on HGPs is driven by a desire to play on consumer fears, based on the experience of two of its senior executives from the UK. Cattle producers in the UK, and the EU in general, are not permitted to use HGPs due to those fears.

The thing is, there is not a shred of evidence that HGPs pose the slightest risk to consumers. Indeed, the World Trade Organisation disputes panel has found the EU's ban to be contrary to international trade rules because it lacks a scientific basis.

There is also little evidence that Australian consumers share the bias against modern agricultural productivity tools that is so widespread in Europe, especially since so many European countries (including the UK) are verging on bankruptcy because they have failed to maintain a competitive economy.

On the other hand, it is well known that consumers are reluctant to buy steak if they suspect it may be tough. Before feedlots became popular it used to be a lottery. Now, steak competes on similar terms to lamb, pork and chicken.

Coles' suggestion that cattle treated with HGPs might be fractionally tougher is absurd. Even if that were true, and the evidence is equivocal, any difference would be long gone by the time the cattle have done all that walking.

Given the lush conditions in much of the country, consumers buying beef from Coles may not experience any nasty surprises for a while. But in due course more and more of them will find they have purchased tough steak. And when that happens, it will be the beef industry rather than Coles that pays the price.

David Leyonhjelm works in the agribusiness and veterinary markets as principal of Baron Strategic Services. He is also Registered Officer of the Liberal Democratic Party.