Fresh allegations of price gouging behaviour by supermarket giants should be a wake-up call to fix Australia’s unfair supermarket duopoly, NSW Farmers President Xavier Martin says.
The claims detailed by Four Corners on Monday night came amid mounting scrutiny of the supermarket sector, which was welcomed by both consumers and farmers.
Mr Martin said the market power abuses reported by the ABC in the “Super Powers” episode of Four Corners would further enrage farmers and families who had been grappling with unfair prices at the farm gate and the checkout for too long.
“These reports that suppliers are having to pay for price increases on their own products are not isolated, and nor are they the only example of anti-competitive behaviour we are seeing from these mega players in our supermarket sector,” Mr Martin said.
“For years, we have heard reports of farmers copping abuses of market power at the hands of the supermarkets, and this behaviour has ranged from offering contracts on a ‘take it or leave it’ basis all the way through to paying farmers prices that are well below the cost of production.
“Giant middlemen are making super profits while farmers and families on either end of the supply chain struggle, and we need meaningful competition reform to fix this obviously broken system.”
Amidst growing media and government attention, Mr Martin said a total transformation of the nation’s competition environment was necessary if fair food prices were ever to be achieved.
“Make no mistake, the many enquiries into this matter are welcome news for farmers and consumers who have been battling these retail giants for too long,” Mr Martin said.
“However, this extra attention won’t solve anything unless there is real action to implement the outcomes of governmental inquiries, and effect true, meaningful competition reform.
“There is far too much profit being sucked out between the paddock and the plate, and Australians deserve better than what they’ve been getting at the farm gate and at the supermarket checkout.
“The next time you’re at the checkout, ask yourself if you’re getting a fair deal. That’s how farmers feel.”
