Farmers expose unfair practices of supermarkets amid ‘price gouging’ investigation

The ongoing parliamentary inquiry into the alleged practice of 'price gouging' by supermarkets has undoubtedly garnered significant interest from consumers.

As the investigation unfolds, the magnitude of its impact on local farmers in Orange, New South Wales (NSW), is becoming increasingly evident.

These farmers are contending with numerous challenges that have the potential to affect the cost of groceries.



Former cherry farmer Michael Cunial's story is just one example of the challenges faced by farmers in the current retail climate.

He said that he left the industry after major supermarkets caused him a loss of nearly $85,000.


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An ex-cherry farmer has recently come forward and revealed that he was short-changed by almost $85,000 by supermarkets. Image source: Unsplash



He recounted how he was short-changed on multiple deliveries of his produce to Coles and Woolworths. In one instance, he received a mere $5,800 on the seconds market for 15 tonnes of cherries he had expected to sell for $90,000.

More and more farmers are realising the unfair pricing practices of major supermarkets and may follow his lead in leaving the industry, he claimed.



His experience is not an isolated incident, as fellow Orange-based farmer Guy Gaeta attested.

He said: ‘I’ve been working in Orange for 38 years, and over the past 30 years I’ve seen about 200 farmers walk away with nothing, after working and selling their crops every day.’

‘People don’t understand how ruthless the supermarkets are,’ he added. ‘Just to sell a zucchini it has to be perfectly straight—pretty soon they will expect bananas to be straight, believe me.’

Gaeta was scheduled to speak at the next public hearing for the Senate Committee investigating price gouging in the rural NSW town on March 12.

The senate committee investigating these issues has heard from various stakeholders, including farmers who have called for drastic measures such as a forced split of Coles and Woolworths.

The supermarkets, who hold 65 per cent of the market share, have denied allegations of profiteering and price gouging, attributing their profits to in-store productivity improvements.



The probe is examining these supermarket chains' price-setting and competition practices, after allegations surfaced that they are taking advantage of both consumers and suppliers.

The implications of such practices are far-reaching, potentially affecting the price and quality of goods available to shoppers, including many seniors who rely on affordable groceries to manage their fixed incomes.

Nationals Senator Ross Cadell, a member of the Senate Committee, has emphasised the importance of the inquiry.

‘The inquiry in Orange that I am part of today is important because prices impacting farmers ultimately end up impacting prices at the checkout,’ he said.

Local farmers in Tasmania demanded that Coles and Woolworths should not be ruled out for a forced split during a round of hearings last week.



Jeremy Griffith from the National Farmers Federation stated: ‘The moment you take it off the table, you are essentially giving a licence to print money to the existing duopoly.’

The debate has reached the highest levels of government, with Prime Minister Anthony Albanese ruling out the proposal to break up the supermarket giants.

He said in an interview: ‘We have a private sector economy in Australia and not a command and control economy. We’re not the old Soviet Union.’

This stance has been met with disappointment from some, including Senator Cadell, who believes that all options should be on the table to ensure a fair and competitive market.



As the inquiry continues, it's crucial for consumers, particularly seniors who may be more vulnerable to price fluctuations, to stay informed about the outcomes and implications.

In the meantime, it's wise to be vigilant about your shopping habits. Compare prices, look for discounts, and consider supporting local farmers' markets where possible. By doing so, you not only get potentially fresher produce but also contribute to a more sustainable and equitable food system.
Key Takeaways
  • A former cherry farmer from Orange claimed major supermarkets, such as Coles and Woolworths, short-changed him nearly $85,000.
  • The farmer, who left the industry due to financial losses, suggested more farmers are becoming aware of these practices and may also leave the sector.
  • A Senate Committee investigating allegations of price gouging by supermarket chains is holding public hearings, with local farmers advocating for market fairness.
  • Despite calls from some farmers for the potential forced split of the Coles and Woolworths duopoly, Prime Minister Anthony Albanese dismissed such a suggestion, emphasising Australia’s private sector economy.
What do you think of this story, members? Share your thoughts in the comments below.
 
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We should all be supporting the farmers and NOT buy our fruit & veg from supermarkets....instead buy from local distributors, it's so sad that farmers are being forced to walk away from their businesses because of these greedy money-hungry supermarkets ! 🤬🤬🤬
 
I think that Albanese should be looking at what the poor farmers are experiencing and help them. We need to support them, rather than just throwing out words of this is not Russia. Supermarkets have had it their way for too long and if we drive the farmer off his land, then where do we get our food from? Supermarkets should take a good long look at their profits now and what is coming in the future. NO FOOD to sell.
 
Greed is the motivator by these gutless over seas owners because they certainly dont give a damn about their suppliers and customers... And they never ever will
Greed is by the consumer. We want everything cheaper. Even when you buy from roadside stalls (eg Bilpin). The price is the same
 
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The reason Coles and Woolworths hold the largest share of the market is due to their providing a service preferred by the buying public if Drakes or IGA provided the same range and convenience maybe more people would shop with them breaking the hold the big two have.
 
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Remember the days where we had fruit and vegie shop everywhere and bow they are all gone. Coles and WW shut these places down by undercutting their prices so they steal the market. After they shut them all down they can sell for whatever they like which is what they are doing. They don't care about these small business and farmers, just their own greed for money.
 
A storm in a teacup. Nothing will come from this brew. Unfortunately.
With the ACC heading up the investigation I agree... the finding with be doctored or swept under the carpet... just like everything else.
 
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Remember the days where we had fruit and vegie shop everywhere and bow they are all gone. Coles and WW shut these places down by undercutting their prices so they steal the market. After they shut them all down they can sell for whatever they like which is what they are doing. They don't care about these small business and farmers, just their own greed for money.
Colesworth shut down the small shopkeeper by organising 24/7 type opening hours that no small shopkeeper could manage. Woolworths also has a wholesale arm that where I live had a great deal of power than it should have had when selling to the former small sj hopkeepers who have just about all shut up shop because they don't have the ability to run extended trading hours. It was government that legislated 24/7 type of trading, late nights, early mornings and weekends so Albanese talking about about government not interfering (as apparently happens in Russia) is a load of old rope.
 
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Colesworth shut down the small shopkeeper by organising 24/7 type opening hours that no small shopkeeper could manage. Woolworths also has a wholesale arm that where I live had a great deal of power than it should have had when selling to the former small sj hopkeepers who have just about all shut up shop because they don't have the ability to run extended trading hours. It was government that legislated 24/7 type of trading, late nights, early mornings and weekends so Albanese talking about about government not interfering (as apparently happens in Russia) is a load of old rope.
The goal of the majors is to put the SME's out of business so they can have everything to themselves and charge what they like.
I noticed that Wollies they are trying this tactic with the Asian shops by ranging the basics of Asian food.
 
I think that Albanese should be looking at what the poor farmers are experiencing and help them. We need to support them, rather than just throwing out words of this is not Russia. Supermarkets have had it their way for too long and if we drive the farmer off his land, then where do we get our food from? Supermarkets should take a good long look at their profits now and what is coming in the future. NO FOOD to sell.
You know where our food will come from - China via New Zealand where they do not have to disclose the county of origin. Our food bowls are being sold off to China also so our fresh produce will be exported to China then imported back to Oz at a premium price. Happening already and now with the so-called Murray-Darling Environmental Scheme it will get even worse as we restrict the availability of water (premium price) for crops to ensure water makes it's way to the ocean in SA. I'm all for taking care of the environment and birds etc but not at the expense of fresh produce availability. Something Labor just don't get.
 
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The reason Coles and Woolworths hold the largest share of the market is due to their providing a service preferred by the buying public if Drakes or IGA provided the same range and convenience maybe more people would shop with them breaking the hold the big two have.
And IGA and Aldi would then have stale fruit and veges that rot/wilt within 2 days - no thanks - just make a point a shopping IGA/Aldi for these fresh items and we can then send a message to the 2 majors - enough is enough!
 
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Remember the days where we had fruit and vegie shop everywhere and bow they are all gone. Coles and WW shut these places down by undercutting their prices so they steal the market. After they shut them all down they can sell for whatever they like which is what they are doing. They don't care about these small business and farmers, just their own greed for money.
Woolworths bought and shut down Franklins 30 years ago. Franklins was giving them a run for their money. What other company have the big 2 shut down?
 
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You know where our food will come from - China via New Zealand where they do not have to disclose the county of origin. Our food bowls are being sold off to China also so our fresh produce will be exported to China then imported back to Oz at a premium price. Happening already and now with the so-called Murray-Darling Environmental Scheme it will get even worse as we restrict the availability of water (premium price) for crops to ensure water makes it's way to the ocean in SA. I'm all for taking care of the environment and birds etc but not at the expense of fresh produce availability. Something Labor just don't get.
Alas but a good deal of the Murrya-Darling'swater went to large farms growing cotton. I wonder how many of those have been sold off to PR China.
 
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And IGA and Aldi would then have stale fruit and veges that rot/wilt within 2 days - no thanks - just make a point a shopping IGA/Aldi for these fresh items and we can then send a message to the 2 majors - enough is enough!
I find that Aldi fruit and vege are sub-standard and I shop for those at the local green grocer where they are better quality and cheaper.
 
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