Shepparton-based Fruit Growers Victoria is one of the horticulture groups that has responded after the Australian Competition and Consumer Commission released the findings from its supermarket inquiry.
The ACCC has found there is a significant bargaining power imbalance between Coles and Woolworths and some suppliers.
It said the two supermarket giants exercise their buyer power through their trading terms and business processes and practices.
“Growers have been feeling the pressure of increasing costs of production coupled with retailers squeezing suppliers for below cost prices,” Fruit Growers Victoria chair Mitchell McNab said.
“The report recommendations for produce suppliers highlight the need for fairer negotiating power for produce suppliers.
“We urge the government to act swiftly on the ACCC’s recommendations to promote a fairer and more profitable marketplace for producers.”
The findings recommended stronger regulatory oversight to ensure supermarkets engage in fair trading practices.
“We stand with Australian producers in advocating for a fairer grocery market,” Mr McNab said.
“We encourage policymakers to prioritise these recommendations and create meaningful change, it is critically important that within the consultation phase that all growers within the supply chain are involved.”
National Farmers’ Federation Horticulture Council chair Jolyon Burnett said the report must serve to establish better and continuously improving trading practices in fresh produce.
“What is clear reading the report is that the relationship between supermarkets and fresh produce suppliers has been unfair, and too often exploitative and abusive,” Mr Burnett said.
“Sometimes you need to hear from an impartial observer, outside a relationship, before you realise the extent to which it’s been unhealthy.
“We hope, more than anyone, that supermarket senior executives and boards sit with this report, absorb its findings and conclusions, and use it to proactively turn a corner in terms of their practice and culture.
“We will also continue dialogue already initiated with major supermarkets to identify and remediate those trading practices not recommended for reform in the report but still detrimental to a fair and efficient fresh produce market.”
Apple and Pear Australia Limited head of industry, advocacy and government relations Jeremy Griffith said the horticulture sector fully supported the report’s recommendations.
“Supermarkets can no longer ignore their own misconduct; they need to finally acknowledge their behaviour, accept responsibility, and do the right thing by Australian growers,” Mr Griffith said.
“Months of Senate inquiries, hearings, and mounting media pressure have forced this issue into the spotlight, exposing the way suppliers, especially fresh fruit and vegetable growers, are being exploited.
“No sector is more vulnerable to retailer power than perishable goods suppliers.
“Frankly, supermarkets should be ashamed of how they are treating the very sector that underpins Australia’s food security.
“APAL will continue working through the NFF Hort Council, lobbying the government to ensure these recommendations aren’t just noted, they are enforced.”
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