Outraged farmers threaten revolt after supermarket giants rake in billion-dollar profits
- Replies 17
A storm is brewing amid the booming supermarket industry, with giants like Coles and Woolworths reporting profits exceeding $1 billion last year.
According to reports, the very people who supply the fresh produce that fills the shelves of these supermarkets are close to ‘walking away’.
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 up shop and stop supplying supermarkets altogether.
The heart of the issue lies in the disparity between the price supermarkets pay farmers for their produce and the price at which they sell it to consumers.
The dramatic call comes as Coles and Woolworths posted over $1 billion in profits last year while farmers struggle with unsustainably low returns.
With morale at rock bottom, many growers say they are prepared to abandon their crops unless concrete steps are taken to close price gaps.
The National Farmers Federation (NFF) has taken a stand, demanding that the Australian Competition and Consumer Commission (ACCC) be endowed with greater authority to delve into supermarket pricing practices.
David Jochinke, President of the NFF, has been vocal in his advocacy for the ACCC to be granted 'some more teeth,' enabling the watchdog to conduct investigations without waiting for formal requests.
'At the moment, the ACCC can’t force people to give them information unless the treasurer allows them to do that through an inquiry process,' he said.
'They need to have more strength and more ability to actually investigate these concerns…when we talk about the price of food, when we talk about the cost price squeeze on the average Australian and then also what is a fair price on agriculture.'
'They can kick into gear and actually get in and pop the lid on this and have a look for us because we can’t keep having to ask them to do this.'
'They need to be able to do it on their own volition.'
Nationals Leader David Littleproud also demanded an ACCC inquiry into fruit and vegetable costs as the Senate inquiry into supermarket prices—which was reportedly greenlit last month—won't go far enough.
'I previously called for an ACCC inquiry into beef and lamb, but it must also now investigate fruit and vegetables—we need to investigate the price disparity, compel CEOs to give evidence and have greater penalties for those who do the wrong thing, including not paying farmers a fair price,' Mr Littleproud said.
Ross Marsolino, a Victorian farmer, is one of many who have had enough.
He is prepared to walk away from his 80-acre zucchini crop unless he starts receiving a fair price of $2 per kilo.
'We will walk away from the whole farm this year if we have to. I have 50 workers who will have to go and find another job,' Mr Marsolino said.
'The supermarkets are buying our product for $1.80 a kilo but then retailing them for $4.99 a kilo, when in reality, our product should be selling for under $3 a kilo.'
'The more you produce, the more you lose. They (supermarkets) dictate the price, and I have no confidence in supermarkets anymore.'
This sentiment is echoed by Shaun Jackson, a melon farmer from Far North Queensland, who warned that Australia could face a food shortage if more farmers decide to stop selling to supermarkets.
'It’s not just me. We are on the precipice of losing 30 per cent of farming—which is 30 per cent of food—if we don’t fix it,' Jackson said.
Agriculture Minister Murray Watt has been urging supermarkets not to profiteer for months. 'Supermarket chains shouldn’t wait for these measures to wrap up. They should offer fair prices on their shelves immediately,' he said.
'It’s good to see the Nationals now adding their voice to the chorus. If they had done something about it while they were in government for 10 years, we would all be better off now,' Senator Watt said.
'We’ll continue applying pressure to the big supermarkets through a senate inquiry this year.'
'In recent months, we’ve seen price reductions for some products, but more is needed.'
'Supermarket chains shouldn’t wait for these measures to wrap up. They should offer fair prices on their shelves immediately.'
The government has also launched a review into the Food and Grocery Code, aiming to increase transparency around supplier payments.
Outside of parliament, the Australian Council of Trade Unions has initiated its own inquiry into price gouging and unfair pricing practices.
It is understood that while the ACCC has the power to independently launch an investigation, it is the government’s call as to whether or not to direct the watchdog to begin the process.
And while the government supports the idea of an ACCC inquiry, it questions what an ACCC review would achieve that the Senate and Australian Council of Trade Unions won’t.
What are your thoughts on this issue? Let us know in the comments below.
According to reports, the very people who supply the fresh produce that fills the shelves of these supermarkets are close to ‘walking away’.
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 up shop and stop supplying supermarkets altogether.
Farmers are threatening to stop their supply to supermarkets if the price gouging does not end. Image source: Freepik.
The heart of the issue lies in the disparity between the price supermarkets pay farmers for their produce and the price at which they sell it to consumers.
The dramatic call comes as Coles and Woolworths posted over $1 billion in profits last year while farmers struggle with unsustainably low returns.
With morale at rock bottom, many growers say they are prepared to abandon their crops unless concrete steps are taken to close price gaps.
The National Farmers Federation (NFF) has taken a stand, demanding that the Australian Competition and Consumer Commission (ACCC) be endowed with greater authority to delve into supermarket pricing practices.
David Jochinke, President of the NFF, has been vocal in his advocacy for the ACCC to be granted 'some more teeth,' enabling the watchdog to conduct investigations without waiting for formal requests.
'At the moment, the ACCC can’t force people to give them information unless the treasurer allows them to do that through an inquiry process,' he said.
'They need to have more strength and more ability to actually investigate these concerns…when we talk about the price of food, when we talk about the cost price squeeze on the average Australian and then also what is a fair price on agriculture.'
'They can kick into gear and actually get in and pop the lid on this and have a look for us because we can’t keep having to ask them to do this.'
'They need to be able to do it on their own volition.'
Nationals Leader David Littleproud also demanded an ACCC inquiry into fruit and vegetable costs as the Senate inquiry into supermarket prices—which was reportedly greenlit last month—won't go far enough.
'I previously called for an ACCC inquiry into beef and lamb, but it must also now investigate fruit and vegetables—we need to investigate the price disparity, compel CEOs to give evidence and have greater penalties for those who do the wrong thing, including not paying farmers a fair price,' Mr Littleproud said.
Ross Marsolino, a Victorian farmer, is one of many who have had enough.
He is prepared to walk away from his 80-acre zucchini crop unless he starts receiving a fair price of $2 per kilo.
'We will walk away from the whole farm this year if we have to. I have 50 workers who will have to go and find another job,' Mr Marsolino said.
'The supermarkets are buying our product for $1.80 a kilo but then retailing them for $4.99 a kilo, when in reality, our product should be selling for under $3 a kilo.'
'The more you produce, the more you lose. They (supermarkets) dictate the price, and I have no confidence in supermarkets anymore.'
This sentiment is echoed by Shaun Jackson, a melon farmer from Far North Queensland, who warned that Australia could face a food shortage if more farmers decide to stop selling to supermarkets.
'It’s not just me. We are on the precipice of losing 30 per cent of farming—which is 30 per cent of food—if we don’t fix it,' Jackson said.
Agriculture Minister Murray Watt has been urging supermarkets not to profiteer for months. 'Supermarket chains shouldn’t wait for these measures to wrap up. They should offer fair prices on their shelves immediately,' he said.
'It’s good to see the Nationals now adding their voice to the chorus. If they had done something about it while they were in government for 10 years, we would all be better off now,' Senator Watt said.
'We’ll continue applying pressure to the big supermarkets through a senate inquiry this year.'
'In recent months, we’ve seen price reductions for some products, but more is needed.'
'Supermarket chains shouldn’t wait for these measures to wrap up. They should offer fair prices on their shelves immediately.'
The government has also launched a review into the Food and Grocery Code, aiming to increase transparency around supplier payments.
Outside of parliament, the Australian Council of Trade Unions has initiated its own inquiry into price gouging and unfair pricing practices.
It is understood that while the ACCC has the power to independently launch an investigation, it is the government’s call as to whether or not to direct the watchdog to begin the process.
And while the government supports the idea of an ACCC inquiry, it questions what an ACCC review would achieve that the Senate and Australian Council of Trade Unions won’t.
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