Why hardworking farmers are enraged at Coles and Woolworths – ‘They are RUTHLESS!’
- Replies 3
As major retailers, including supermarket giants Coles and Woolworths, are set to reveal their profits for the 2021-2022 financial year, market analysts are bracing to see them post billion-dollar gains even as the cost of living skyrockets – and Australian farmers are NOT happy about it.
Hardworking farmers weren’t shy about their disdain for Coles and Woolies after suggestions were made that major supermarkets pass the burden of price hikes to shoppers.
Stock Market Analyst Johannes Faul told the Australian Financial Review (AFR) that the supermarkets' ability to raise prices as needed meant profits would remain 'steady'. Another analyst, Craig Stafford, stated that supermarkets were 'in good shape' as inflation feeds into higher prices for consumers.
Farmers aren’t happy with the high prices at supermarkets. Source: Starts at 60
The predictions followed after an independent finance sector analyst shared that 'there appears to be evidence of price gouging' in supermarkets and reached out to the ACCC to investigate. Price gouging happens when a retailer takes advantage of an external crisis to charge its consumers with unreasonably high prices.
One cherry farmer from Orange, Guy Gaeta, said the idea that supermarkets could get richer amid high inflation rates while families are forced to cut back 'really p***es me off'.
'You can't use inflation as a reason to make money… It's shocking. They are ruthless!' he sneered.
'Sure, everyone is paying more for extra costs, like with fuel. But when you say "Well, we've got seven per cent inflation, so we'll just bump up prices 10 per cent", that's just price gouging isn't it?’
'It's easy money for them, they must want to buy more Ferraris. It's just a rip-off. I don't think it's a fair business – you're profiting from people because of inflation. I thought no one made money out of inflation.'
Martin North, an Analyst with Digital Finance Analytics, explained that his company's consumer surveys found that supermarket prices have increased by '20 per cent or more, way above CPI' in some cases.
'If you look carefully, it's clear to me that these companies are taking the opportunity to bulk up and safeguard their profits to shareholders by adding more than the rise in input costs to their prices. In other words, firms can lift prices to protect margins, at the expense of consumers.'
Mr North claimed that price-gouging is evident in 'the supermarket sector, oil industry, and gas industry'.
'There appears to be evidence of price gouging at a time when consumers cannot afford to pay more than they should.’ he said.
Graph illustrates the alarming rise in the cost of basic needs. Source: Daily Mail
Another farmer, Chris Stillard, who grows persimmons, said that the supermarkets' confidence in future profits did not surprise him.
'I'm no economist–I'm a farmer–but maybe that's what you get when you have two supermarkets controlling 70 per cent of the market,' he shared.
'When there's a perfect excuse like inflation, it gets supermarkets off the hook.'
Mr Stillard claimed that consistent price hikes on all types of produce should never happen. He said whenever fruits and vegetables are in a surplus–such as apples because China has stopped importing them–then prices should drop to reflect that.
'Australia doesn't have any laws to prosecute price gouging. It's blue murder.’ he continued, adding that consumers shouldn’t settle for high prices and to 'go shop around’ instead.
Touching on the issue, a spokesperson from Coles stated: 'At Coles, our key focus is keeping the cost of the family shop down and delivering great value to our customers. Since January, we have reduced prices on over 1,000 items across our range of more than 20,000 products.'
Millions are struggling to cope with the price hike. Source: Verdict Food Service
Meanwhile, Woolworths said: 'Managing industry-wide inflationary pressures will continue to be the focus for us as we work hard to provide customers with great value in partnership with our suppliers through programs like Prices Dropped for Winter and Price Freeze, as well as the thousands of weekly specials.'
According to the Australian Bureau of Statistics (ABS), the prices of essentials including vegetables, fruit, breakfast cereals, meat, bread, eggs, oils, and butter have all jumped dramatically compared to prices in the past year.
The most significant price hike in grocery items by far is the cost of veggies, which soared by 7.3 per cent in the last year. This is mostly attributed to the continued flooding in southeast Queensland and New South Wales.
What are your thoughts on this controversial prediction? Do you agree that major supermarkets are overcharging their customers? Let us know in the comments!
Learn what other farmers think of this issue by watching the video below:
Source: 7News Australia
Hardworking farmers weren’t shy about their disdain for Coles and Woolies after suggestions were made that major supermarkets pass the burden of price hikes to shoppers.
Stock Market Analyst Johannes Faul told the Australian Financial Review (AFR) that the supermarkets' ability to raise prices as needed meant profits would remain 'steady'. Another analyst, Craig Stafford, stated that supermarkets were 'in good shape' as inflation feeds into higher prices for consumers.
Farmers aren’t happy with the high prices at supermarkets. Source: Starts at 60
The predictions followed after an independent finance sector analyst shared that 'there appears to be evidence of price gouging' in supermarkets and reached out to the ACCC to investigate. Price gouging happens when a retailer takes advantage of an external crisis to charge its consumers with unreasonably high prices.
One cherry farmer from Orange, Guy Gaeta, said the idea that supermarkets could get richer amid high inflation rates while families are forced to cut back 'really p***es me off'.
'You can't use inflation as a reason to make money… It's shocking. They are ruthless!' he sneered.
'Sure, everyone is paying more for extra costs, like with fuel. But when you say "Well, we've got seven per cent inflation, so we'll just bump up prices 10 per cent", that's just price gouging isn't it?’
'It's easy money for them, they must want to buy more Ferraris. It's just a rip-off. I don't think it's a fair business – you're profiting from people because of inflation. I thought no one made money out of inflation.'
Martin North, an Analyst with Digital Finance Analytics, explained that his company's consumer surveys found that supermarket prices have increased by '20 per cent or more, way above CPI' in some cases.
'If you look carefully, it's clear to me that these companies are taking the opportunity to bulk up and safeguard their profits to shareholders by adding more than the rise in input costs to their prices. In other words, firms can lift prices to protect margins, at the expense of consumers.'
Mr North claimed that price-gouging is evident in 'the supermarket sector, oil industry, and gas industry'.
'There appears to be evidence of price gouging at a time when consumers cannot afford to pay more than they should.’ he said.
Graph illustrates the alarming rise in the cost of basic needs. Source: Daily Mail
Another farmer, Chris Stillard, who grows persimmons, said that the supermarkets' confidence in future profits did not surprise him.
'I'm no economist–I'm a farmer–but maybe that's what you get when you have two supermarkets controlling 70 per cent of the market,' he shared.
'When there's a perfect excuse like inflation, it gets supermarkets off the hook.'
Mr Stillard claimed that consistent price hikes on all types of produce should never happen. He said whenever fruits and vegetables are in a surplus–such as apples because China has stopped importing them–then prices should drop to reflect that.
'Australia doesn't have any laws to prosecute price gouging. It's blue murder.’ he continued, adding that consumers shouldn’t settle for high prices and to 'go shop around’ instead.
Touching on the issue, a spokesperson from Coles stated: 'At Coles, our key focus is keeping the cost of the family shop down and delivering great value to our customers. Since January, we have reduced prices on over 1,000 items across our range of more than 20,000 products.'
Millions are struggling to cope with the price hike. Source: Verdict Food Service
Meanwhile, Woolworths said: 'Managing industry-wide inflationary pressures will continue to be the focus for us as we work hard to provide customers with great value in partnership with our suppliers through programs like Prices Dropped for Winter and Price Freeze, as well as the thousands of weekly specials.'
According to the Australian Bureau of Statistics (ABS), the prices of essentials including vegetables, fruit, breakfast cereals, meat, bread, eggs, oils, and butter have all jumped dramatically compared to prices in the past year.
The most significant price hike in grocery items by far is the cost of veggies, which soared by 7.3 per cent in the last year. This is mostly attributed to the continued flooding in southeast Queensland and New South Wales.
What are your thoughts on this controversial prediction? Do you agree that major supermarkets are overcharging their customers? Let us know in the comments!
Learn what other farmers think of this issue by watching the video below:
Source: 7News Australia
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