AS families struggle to pay for their food amidst a ‘cost-of-living’ crisis, supermarkets are still making record profits while the Federal Government has launched an inquiry into the supermarket prices.
Leader of the Nationals, David Littleproud, said there was further evidence of price disparity on the cost of fruit and vegetables in supermarkets, after demanding an Australian Competition and Consumer Commission (ACCC) price inquiry more than three months ago.
“The Nationals have been calling for an ACCC price inquiry into supermarket price gouging, which as an independent watchdog would have greater power to act and compel supermarket CEOs to give evidence,” he said.
“Our growers and farmers need the confidence to get their fair share, to know they can negotiate in good faith and get paid on the right terms.
“Farmers are walking away because supermarkets are taking them for a ride.”
Over the past few weeks, ‘Natural Earth Produce’ Victorian farmer, Ross Marsolino, said he was prepared to walk away from an 80-acre zucchini crop if he couldn’t get more than $2 a kilo in 2024.
“We will walk away from the whole farm this year if we have to,” he 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.
“Since Covid, supermarkets have got stronger and stronger. Now supermarkets make too much profit out of our crop and we simply can’t survive.
“The more you produce the more you lose. They dictate the price and I have no confidence in supermarkets anymore.”
‘Daintree Fresh’ North Queensland farmer, Shaun Jackson, is warning that Australia will run out of food as farmers stop selling to supermarkets and walk away.
He said 80 per cent of the melons he produces are now going to Japan because in Australia, an average melon would sell to the supermarkets for up to $1.50 each.
However, the supermarkets would then sell the exact same product to consumers for around $5.90 each.
“Instead of dealing with Coles and Woolworths I’m now sending 200,000 boxes of melons overseas,” Mr Jackson said.
“My cost of production is $14 for a box, right now the supermarket price is $12 to $14 a box. For that, it costs me $4 per box to get the product from a truck to Brisbane.
“So, I’m gone, it’s goodbye Shaun if that continues in 2024.
“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.”
Mr Jackson’s concerns have been backed by AusVeg, which highlighted in a recent survey that there is record-low morale within the industry with more than 30 per cent of Australian vegetable growers considering leaving the industry this year.
Labour shortages, policy changes and rising operational costs are the common major concerns for these results.
Coles and Woolworths own 65 per cent of the market share and made record profits of more than $1 billion each last year.
To oversee the urgent ACCC inquiry, a reviewer has been appointed to analyse the rising supermarket prices which Mr Littleproud says are ripping off farmers and growers.
Dr Craig Emerson was announced as the reviewer of the inquiry just hours before 100 days had passed into a 272-day review.
Mr Littleproud said it had been a disappointing wait for action and labelled it as ‘embarrassing’.
He said the Prime Minister has been shamed into announcing the reviewer, while families and farmers continue to be ripped off at the checkout.
“It is disappointing that it has taken almost 100 days for the Albanese Government to appoint Dr Craig Emerson as the Reviewer,” Mr Littleproud said.
“The cost-of-living crisis, which involves grocery prices, is the most important issue facing Australian families.
“Labor is out of touch with the priorities of Australian families. How can a reviewer report by its due date of June 30, 2024, when it has taken them almost 100 days to appoint Dr Emerson.”
