The Federal Government and Opposition have laid their cards out on the table when it comes to supporting the fresh produce sector.
This comes as the National Farmers’ Federation (NFF) has called on the Government to work closely with fresh produce suppliers in light of recent concerns that the sector is facing serious, long-term challenges.
An independent report by the Australian Competition and Consumer Commission (ACCC) Supermarkets Inquiry Final Report made 20 recommendations after finding that ALDI, Coles, and Woolworths are among the most profitable supermarket businesses, with their average product margins increasing over the past five financial years.
The recommendations which include clearer pricing practices, greater transparency for suppliers, and reforms to planning and zoning laws, are designed to improve competition in the supermarket sector, benefit consumers, and provide suppliers with fairer bargaining conditions.
NFF President David Jochinke said that for two years, debates have raged about supermarket market power, but this independent report provides clear confirmation that fresh produce suppliers are facing serious, real challenges.
Mr. Jochinke is calling for a bipartisan commitment to implement the recommendations in the report for supermarket reforms, to provide better outcomes for both consumers and suppliers.
“Whoever forms the next Government must work closely with fresh produce suppliers to ensure these recommendations deliver meaningful change.”
In a statement published on March 21, the Coalition made a commitment to crack down on major supermarkets and deliver fair prices if elected.
Shadow Agriculture Minister David Littleproud said they are proposing changes that will protect families at the checkout and farmers at the farm gate.
The Coalition’s proposals include higher penalties, with on-the-spot fines increasing from $2 million to $10 million, and increased powers for the ACCC to conduct random audits of major supermarkets.
The Coalition also plans to appoint a Supermarket Commissioner to act as a confidential avenue for farmers and suppliers, addressing fears of retribution.
ACCC and the courts will have sector-specific divestiture powers to address supermarket behaviour and put an end to instances of price gouging.
“All families and farmers are asking for is a fair price but Labor has let them down. The Coalition will have the back of families and farmers,” Mr Littleproud said.
“Our changes will protect families at the checkout and farmers at the farm gate.”
The Labor Government has proposed their own packages of promises when it come to the fresh food sector.
They have announced, if Labor is re-elected they to provide funding to help fresh produce industry associations deliver targeted education programs and make price gouging by supermarkets illegal.
They have also stated they will adopt recommendations from the ACCC’s supermarket inquiry relating to pricing.
Minister for Agriculture, Fisheries, and Forestry, Julie Collins, said the Labor Government will provide $2.9 million to help farmers push back against unfair practices and enforce their rights.
She said Labor has promised to establish a task force to provide advice on the best options by the end of October 2025, informed by laws on excessive pricing in place overseas.
“Our farmers produce exceptional, high-quality food and deserve a fair go from supermarkets,” Ms. Collins said.
“Labor will stand up to the big supermarkets so farmers get a fair deal at the farm gate, and shoppers aren’t treated like mugs at the checkout.”
