NACMA CATTLE CONTRACT & TRADE RULES

NACMA and Meat & Livestock Australia (MLA) have embarked on a new initiative for the Australian cattle industry. The joint venture is aimed at increasing the uptake of risk management within the cattle industry through the development of a set of industry standard trade rules for use within the Australian cattle industry.

One issue impeeding the uptake of risk management tools in the cattle industry is the lack of a forward marketing culture. A number of factors have been identified contributing to this, one being the lack of confidence in forward contracting, stemming from a lack of standard and accessable trade rules creating uncertainty and inconsistency in the forward market.

To overcome this impediment NACMA and MLA, with the guidance on the cattle industry peak councils, developed a set of standard industry rules and pro forma contract. These products have been endorsed by Cattle Council of Australia and Australian Livestock and Property Agents Association and the Australian Lot Feeders Association.

NACMA are the custodians of the industry standard rules and will manage the dispute resolution for the trade rules.