Australia's supermarket giants are under the microscope as the Albanese government takes aim at the escalating cost of living crisis.

The government focuses on the high grocery prices that have been a thorn in the side of Australian consumers, particularly seniors who are on fixed incomes.

Prime Minister Anthony Albanese has confirmed that former Labor MP Craig Emerson will spearhead a review of the Food and Grocery Code of Conduct.

'We find it completely unacceptable...when supermarkets are getting goods cheaper, then the prices should go down,' Albanese said.

The government will look into the voluntary code regulating grocery prices in supermarkets. Credit: Pexels

'When that doesn't happen, then there's something wrong in the system—that's an abuse of market power.'

This statement came in the wake of rising tensions between producers and supermarkets.

Producers alleged that supermarkets charged customers exorbitantly more than what they pay farmers, creating a significant disparity in the value chain.

In one story, a Cape York Peninsula producer refused to do business with Coles and Woolworths, saying supermarkets are ‘holding down’ wholesale prices.

‘Coles and Woolworths send their staff around [to each others' stores] with a little notepad to make note of prices,’ Melon farmer Shaun Jackson said.

'They're manipulating the market. When you own 76 per cent of the food supply, it's a perfect excuse.'

Ross Marsolino, a 61-year-old farmer from Shepparton who recently had to abandon his 80-acre zucchini crop, also shared his sentiment.

He criticised the supermarket giants for their high prices, which he believed were diminishing demand for his produce and making it nearly impossible for him to profit.

‘We're controlled by what the retail sector sells our product at, that determines whether we keep selling the product or not,' he complained.

'This is what is concerning to me; we should be able to service the country with all our produce that we have here. Farmers are just trying to pay their bills.’

Farmers across Australia are malcontent, accusing Australia’s supermarket giants of exploiting them through price gouging.

The situation has become so dire that some farmers are threatening to close their shops and stop supplying supermarkets altogether. Read more about this story here.

The review will delve into whether a revamp of the supermarket industry code is necessary to improve the conduct of retailers and wholesalers towards their suppliers.

The government is prepared to take further action based on the review's recommendations, signalling a potential shake-up in the supermarket industry.

'We want to see supermarkets do the right thing by their customer,' Albanese said.

The Food and Grocery Code of Conduct, which was announced for review in October, regulates how ALDI, Coles, Woolworths, and IGA operator Metcash deal with suppliers and customers.

This voluntary code covers aspects such as good faith dealings, dispute resolution, and prohibiting certain types of conduct. For instance, it prohibits retailers and wholesalers from varying supply agreements retrospectively. It also requires them to act lawfully and in good faith.

The government is considering a shift from industry-led codes of conduct and consumer function to mandating requirements and consumer complaints handling.

The review will also examine strengthening consumer rights in circumstances where a lack of market competition results in price gouging and unacceptable service standards.

Key Takeaways

• Prime Minister Anthony Albanese has initiated a review of the Food and Grocery Code of Conduct, led by former Labor MP Craig Emerson.
• The review will assess whether the code needs an overhaul to improve retailers' and wholesalers' conduct towards suppliers.
• The government is collaborating with the Australian Competition and Consumer Commission (ACCC) to address what is perceived as an abuse of market power by supermarkets.
• Depending on the review's recommendations, the government is prepared to enact further measures to ensure supermarkets act in the interest of their customers, with a focus on fair pricing and acceptable service standards.

What are your thoughts on the high cost of groceries? Have you noticed a significant increase in prices? Share your experiences in the comments below.

 

[ElizabethL]

Tuna in Woolies yesterday ,2 for $3 or $1.50 each ,I had to get out my calculator .

They think we are Stupid

 

[freedy50]

There's a lot of talking being done, but will there actually be any action?

They need some UK supermarkets here to break up the duopoly.

 

[IAN3005]

Australia's supermarket giants are under the microscope as the Albanese government takes aim at the escalating cost of living crisis.

The government focuses on the high grocery prices that have been a thorn in the side of Australian consumers, particularly seniors who are on fixed incomes.

Prime Minister Anthony Albanese has confirmed that former Labor MP Craig Emerson will spearhead a review of the Food and Grocery Code of Conduct.

'We find it completely unacceptable...when supermarkets are getting goods cheaper, then the prices should go down,' Albanese said.

View attachment 38942

The government will look into the voluntary code regulating grocery prices in supermarkets. Credit: Pexels

'When that doesn't happen, then there's something wrong in the system—that's an abuse of market power.'

This statement came in the wake of rising tensions between producers and supermarkets.

Producers alleged that supermarkets charged customers exorbitantly more than what they pay farmers, creating a significant disparity in the value chain.

In one story, a Cape York Peninsula producer refused to do business with Coles and Woolworths, saying supermarkets are ‘holding down’ wholesale prices.

‘Coles and Woolworths send their staff around [to each others' stores] with a little notepad to make note of prices,’ Melon farmer Shaun Jackson said.

'They're manipulating the market. When you own 76 per cent of the food supply, it's a perfect excuse.'

Ross Marsolino, a 61-year-old farmer from Shepparton who recently had to abandon his 80-acre zucchini crop, also shared his sentiment.

He criticised the supermarket giants for their high prices, which he believed were diminishing demand for his produce and making it nearly impossible for him to profit.

‘We're controlled by what the retail sector sells our product at, that determines whether we keep selling the product or not,' he complained.

'This is what is concerning to me; we should be able to service the country with all our produce that we have here. Farmers are just trying to pay their bills.’

Farmers across Australia are malcontent, accusing Australia’s supermarket giants of exploiting them through price gouging.

The situation has become so dire that some farmers are threatening to close their shops and stop supplying supermarkets altogether. Read more about this story here.

The review will delve into whether a revamp of the supermarket industry code is necessary to improve the conduct of retailers and wholesalers towards their suppliers.

The government is prepared to take further action based on the review's recommendations, signalling a potential shake-up in the supermarket industry.

'We want to see supermarkets do the right thing by their customer,' Albanese said.

The Food and Grocery Code of Conduct, which was announced for review in October, regulates how ALDI, Coles, Woolworths, and IGA operator Metcash deal with suppliers and customers.

This voluntary code covers aspects such as good faith dealings, dispute resolution, and prohibiting certain types of conduct. For instance, it prohibits retailers and wholesalers from varying supply agreements retrospectively. It also requires them to act lawfully and in good faith.

The government is considering a shift from industry-led codes of conduct and consumer function to mandating requirements and consumer complaints handling.

The review will also examine strengthening consumer rights in circumstances where a lack of market competition results in price gouging and unacceptable service standards.

Key Takeaways

• Prime Minister Anthony Albanese has initiated a review of the Food and Grocery Code of Conduct, led by former Labor MP Craig Emerson.
• The review will assess whether the code needs an overhaul to improve retailers' and wholesalers' conduct towards suppliers.
• The government is collaborating with the Australian Competition and Consumer Commission (ACCC) to address what is perceived as an abuse of market power by supermarkets.
• Depending on the review's recommendations, the government is prepared to enact further measures to ensure supermarkets act in the interest of their customers, with a focus on fair pricing and acceptable service standards.

What are your thoughts on the high cost of groceries? Have you noticed a significant increase in prices? Share your experiences in the comments below.

I keep a spreadsheet of prices by month and comparing the year to last year I would like someone to explain to me how some products have jumped up a far 1s 121% whereas the inflation rate is purported to be at an all-time low of 4.8%.
Rent has gone up by 20.1%.

 

[salv]

30 years ago I did a TAFE course on Small Business Studies, which included a topic on marketing. We were taught that Coles and Woolworths work the same way with their suppliers. They go in and take the majority of their produce, year after year till the suppliers lose the connection with their old distributors. Then Coles and Woolworths keep dropping the unit price offered to the suppliers, because they have no where else to sell their produce.

As a regular shopper, I have seen the prices of groceries rise double and triple at Coles, Woolworths and IGA, since Covid, and it is NOT reflective of a 6% or 7% inflation rate! Why weren’t they investigated when they announced record profits of over $1b each to their shareholders during the cost of living crisis.

 

[IAN3005]

30 years ago I did a TAFE course on Small Business Studies, which included a topic on marketing. We were taught that Coles and Woolworths work the same way with their suppliers. They go in and take the majority of their produce, year after year till the suppliers lose the connection with their old distributors. Then Coles and Woolworths keep dropping the unit price offered to the suppliers, because they have no where else to sell their produce.

As a regular shopper, I have seen the prices of groceries rise double and triple at Coles, Woolworths and IGA, since Covid, and it is NOT reflective of a 6% or 7% inflation rate! Why weren’t they investigated when they announced record profits of over $1b each to their shareholders during the cost of living crisis.

That is their usual tactic.
I was fortunate enough to work for a company that gave me access to the inner workings of both Cole and Woolies.
The number of people who were driven to the wall using the tactic you mentioned is staggering.

 

[mylittletibbies]

30 years ago I did a TAFE course on Small Business Studies, which included a topic on marketing. We were taught that Coles and Woolworths work the same way with their suppliers. They go in and take the majority of their produce, year after year till the suppliers lose the connection with their old distributors. Then Coles and Woolworths keep dropping the unit price offered to the suppliers, because they have no where else to sell their produce.

As a regular shopper, I have seen the prices of groceries rise double and triple at Coles, Woolworths and IGA, since Covid, and it is NOT reflective of a 6% or 7% inflation rate! Why weren’t they investigated when they announced record profits of over $1b each to their shareholders during the cost of living crisis.

Not only supermarkets.
Thirty five years ago I had a business manufacturing baby Manchester.
My agent in Victoria told me that Target wanted me to submit a sample range.
I was surprised, to say the least, as my products were a bit high end for Target. I sold mainly to baby wear shops, Myers, Harris Scarfe etc
I submitted a range to them, with the price cut to the bone, a little less expensive fabrics, but much higher quality than the Chinese stuff they were selling. The price reflecting the fact that they would be buying in bulk.
My agent got back to me all excited that they wanted to buy the product, I just needed to drop my price. I told them to go jump .
They do the same thing, next year they drop the price again, and then again.
I would have needed to hire at the very least another 12 to 20 machinists, make a massive investment in overlockers, industrial sewing machines etc.
The company that got the contract went bankrupt in three years because in the end there was no profit left to recoup the massive investment
Target then just move on to some other poor silly supplier.

 

[IAN3005]

Australia's supermarket giants are under the microscope as the Albanese government takes aim at the escalating cost of living crisis.

The government focuses on the high grocery prices that have been a thorn in the side of Australian consumers, particularly seniors who are on fixed incomes.

Prime Minister Anthony Albanese has confirmed that former Labor MP Craig Emerson will spearhead a review of the Food and Grocery Code of Conduct.

'We find it completely unacceptable...when supermarkets are getting goods cheaper, then the prices should go down,' Albanese said.

View attachment 38942

The government will look into the voluntary code regulating grocery prices in supermarkets. Credit: Pexels

'When that doesn't happen, then there's something wrong in the system—that's an abuse of market power.'

This statement came in the wake of rising tensions between producers and supermarkets.

Producers alleged that supermarkets charged customers exorbitantly more than what they pay farmers, creating a significant disparity in the value chain.

In one story, a Cape York Peninsula producer refused to do business with Coles and Woolworths, saying supermarkets are ‘holding down’ wholesale prices.

‘Coles and Woolworths send their staff around [to each others' stores] with a little notepad to make note of prices,’ Melon farmer Shaun Jackson said.

'They're manipulating the market. When you own 76 per cent of the food supply, it's a perfect excuse.'

Ross Marsolino, a 61-year-old farmer from Shepparton who recently had to abandon his 80-acre zucchini crop, also shared his sentiment.

He criticised the supermarket giants for their high prices, which he believed were diminishing demand for his produce and making it nearly impossible for him to profit.

‘We're controlled by what the retail sector sells our product at, that determines whether we keep selling the product or not,' he complained.

'This is what is concerning to me; we should be able to service the country with all our produce that we have here. Farmers are just trying to pay their bills.’

Farmers across Australia are malcontent, accusing Australia’s supermarket giants of exploiting them through price gouging.

The situation has become so dire that some farmers are threatening to close their shops and stop supplying supermarkets altogether. Read more about this story here.

The review will delve into whether a revamp of the supermarket industry code is necessary to improve the conduct of retailers and wholesalers towards their suppliers.

The government is prepared to take further action based on the review's recommendations, signalling a potential shake-up in the supermarket industry.

'We want to see supermarkets do the right thing by their customer,' Albanese said.

The Food and Grocery Code of Conduct, which was announced for review in October, regulates how ALDI, Coles, Woolworths, and IGA operator Metcash deal with suppliers and customers.

This voluntary code covers aspects such as good faith dealings, dispute resolution, and prohibiting certain types of conduct. For instance, it prohibits retailers and wholesalers from varying supply agreements retrospectively. It also requires them to act lawfully and in good faith.

The government is considering a shift from industry-led codes of conduct and consumer function to mandating requirements and consumer complaints handling.

The review will also examine strengthening consumer rights in circumstances where a lack of market competition results in price gouging and unacceptable service standards.

Key Takeaways

• Prime Minister Anthony Albanese has initiated a review of the Food and Grocery Code of Conduct, led by former Labor MP Craig Emerson.
• The review will assess whether the code needs an overhaul to improve retailers' and wholesalers' conduct towards suppliers.
• The government is collaborating with the Australian Competition and Consumer Commission (ACCC) to address what is perceived as an abuse of market power by supermarkets.
• Depending on the review's recommendations, the government is prepared to enact further measures to ensure supermarkets act in the interest of their customers, with a focus on fair pricing and acceptable service standards.

What are your thoughts on the high cost of groceries? Have you noticed a significant increase in prices? Share your experiences in the comments below.

like everything the government 'LOOKS INTO' this will be a waste of taxpayers hard earned $ and will be swept under the carpet ... they will make a 'BIG NOISE' about it just to appease us plebiscites.

 

[Tygie]

Australia's supermarket giants are under the microscope as the Albanese government takes aim at the escalating cost of living crisis.

The government focuses on the high grocery prices that have been a thorn in the side of Australian consumers, particularly seniors who are on fixed incomes.

Prime Minister Anthony Albanese has confirmed that former Labor MP Craig Emerson will spearhead a review of the Food and Grocery Code of Conduct.

'We find it completely unacceptable...when supermarkets are getting goods cheaper, then the prices should go down,' Albanese said.

View attachment 38942

The government will look into the voluntary code regulating grocery prices in supermarkets. Credit: Pexels

'When that doesn't happen, then there's something wrong in the system—that's an abuse of market power.'

This statement came in the wake of rising tensions between producers and supermarkets.

Producers alleged that supermarkets charged customers exorbitantly more than what they pay farmers, creating a significant disparity in the value chain.

In one story, a Cape York Peninsula producer refused to do business with Coles and Woolworths, saying supermarkets are ‘holding down’ wholesale prices.

‘Coles and Woolworths send their staff around [to each others' stores] with a little notepad to make note of prices,’ Melon farmer Shaun Jackson said.

'They're manipulating the market. When you own 76 per cent of the food supply, it's a perfect excuse.'

Ross Marsolino, a 61-year-old farmer from Shepparton who recently had to abandon his 80-acre zucchini crop, also shared his sentiment.

He criticised the supermarket giants for their high prices, which he believed were diminishing demand for his produce and making it nearly impossible for him to profit.

‘We're controlled by what the retail sector sells our product at, that determines whether we keep selling the product or not,' he complained.

'This is what is concerning to me; we should be able to service the country with all our produce that we have here. Farmers are just trying to pay their bills.’

Farmers across Australia are malcontent, accusing Australia’s supermarket giants of exploiting them through price gouging.

The situation has become so dire that some farmers are threatening to close their shops and stop supplying supermarkets altogether. Read more about this story here.

The review will delve into whether a revamp of the supermarket industry code is necessary to improve the conduct of retailers and wholesalers towards their suppliers.

The government is prepared to take further action based on the review's recommendations, signalling a potential shake-up in the supermarket industry.

'We want to see supermarkets do the right thing by their customer,' Albanese said.

The Food and Grocery Code of Conduct, which was announced for review in October, regulates how ALDI, Coles, Woolworths, and IGA operator Metcash deal with suppliers and customers.

This voluntary code covers aspects such as good faith dealings, dispute resolution, and prohibiting certain types of conduct. For instance, it prohibits retailers and wholesalers from varying supply agreements retrospectively. It also requires them to act lawfully and in good faith.

The government is considering a shift from industry-led codes of conduct and consumer function to mandating requirements and consumer complaints handling.

The review will also examine strengthening consumer rights in circumstances where a lack of market competition results in price gouging and unacceptable service standards.

Key Takeaways

• Prime Minister Anthony Albanese has initiated a review of the Food and Grocery Code of Conduct, led by former Labor MP Craig Emerson.
• The review will assess whether the code needs an overhaul to improve retailers' and wholesalers' conduct towards suppliers.
• The government is collaborating with the Australian Competition and Consumer Commission (ACCC) to address what is perceived as an abuse of market power by supermarkets.
• Depending on the review's recommendations, the government is prepared to enact further measures to ensure supermarkets act in the interest of their customers, with a focus on fair pricing and acceptable service standards.

What are your thoughts on the high cost of groceries? Have you noticed a significant increase in prices? Share your experiences in the comments below.

Last week got mums biscuits at Woollies - $3 normal price a packet. This week got them again and they had jumped up a whole $1 - now $4 normal price a packet. There isn't many in the packet either - 7 sometimes 8 biscuits. She likes them, even though they are kinda what I'd call the 'Fancy $h!t'. My local Coles does not have this flavour in them and it seems the only one in town is Woollies that has it. Mind you ALL the flavours were the same new price.
This has price hike happened since it was more in the news this week about the inquiry. HA HA HA. Is this their idea - up the normal prices before the inquiry so it looks like they are going to lose out if they lower the prices.

This is just one i noticed in the store and it's the same as the online price. Ridiculous!! They had sold them for ages at $3 a packet and were making money. No reason to up the price other than greed and trying to beat the inquiry.

Would go to Aldi but their stuff is full of Sulphites and i don't have a death wish for us at home here. Would go to Fresh & Save but they have a lot of unheard of brands that fall into the same reason as Aldi or have some other thing in them one or more of us can't eat (been there tried that!) or i would go to IGA but this town has a p!$$ weak little one of those with HIGH prices. Same with Foodworks only we have 2 of those (one on either side of town) So i am trapped with Coles and Woollies but i split what i get between the two of them depending on what they have that each other doesn't have and what is on special or cheaper at either, then as to personal prefference. Average bill at Coles used to be $85 - $110 now it's $130 - $170 a week for 2 people and a cat! At woollies it was $55 - $90 now it's $90 - $150 a week for nothing much at all to speak of at each store.

 

[Ezzy]

IF WE LOSE OUR FARMERS, AS A MEMBER SUGGESTED COULD HAPPEN, EVERYTHING WILL COME FROM OVERSEAS. WE ARE COMPLAINING NOW ABOUT PRODUCTS USED TO GROW THOSE VEGETABLES BECAUSE THEY ARE BANNED IN AUSTRALIA.

THOSE EXPORTERS COULD TELL US TO PUT UP OR SHUT UP. WHAT DO WE DO THEN?

WOOLWORTHS ALREADY HAVE OR ARE TRYING TO BUY THEIR OWN DAIRY. WHAT WILL FOLLOW?

 

[buttons1426]

I hope equally the focus of the supermarkets responses are turned back onto government fees and taxes. Given the high amount paid in fuel excise in this country and the expectation of consumers that strawberries and tomatoes are available 12mths of the year. The only place these can be grown all year is Qld, the 2 biggest markets are NSW & Vic, so the transport alone to bring to market is several 1000's in fuel cost alone, of which the govt take 48% of said cost in taxes.

so true

 

[Zemo]

Last time I looked, we weren't living under a totalitarian government, although some practices by the Queensland mob are fast approaching that style of doing things. Really, how much power has a government got to dictate to a private concern how to run its business (take fuel, for instance)? They can shake their finger at the big retailers however much they like and the long-suffering public can only shake their heads at the exorbitant prices they come up with, but, short of ORDERING them what to charge for anything, it's just another example of "Suck it up, princess". And the government knows it.
Meanwhile, the government laughs all the way to the bank -- read, Treasury.
As far as "competition will bring prices down", the only competition is called "fastest finger first" in the race to the computer keyboard to jack the prices up, and then the others follow like lambs to the slaughter.

 

[IAN3005]

Last time I looked, we weren't living under a totalitarian government, although some practices by the Queensland mob are fast approaching that style of doing things. Really, how much power has a government got to dictate to a private concern how to run its business (take fuel, for instance)? They can shake their finger at the big retailers however much they like and the long-suffering public can only shake their heads at the exorbitant prices they come up with, but, short of ORDERING them what to charge for anything, it's just another example of "Suck it up, princess". And the government knows it.
Meanwhile, the government laughs all the way to the bank -- read, Treasury.
As far as "competition will bring prices down", the only competition is called "fastest finger first" in the race to the computer keyboard to jack the prices up, and then the others follow like lambs to the slaughter.

Exactly... there is so much bribery and corruption going on it would put the best to shame.... 'you scratch my back and I'll scratch yours'.