The state’s peak farm body says the billion-dollar profitsof the major supermarkets are a reminder Australian families are paying theprice for competition policy failures.
Coles posted a $1.1 billion annual profit on Tuesday, whileWoolworths announced a $1.7 billion profit on Wednesday.
NSW Farmers Vice President Rebecca Reardon said the billion-dollarprofit postings were a stark reminder of the “profit push” practices of thenation’s supermarket duopoly, which continued to cause pain at the checkout aswell as the farm gate.
“Crunch the numbers and it’s clear that these super profits simplydon’t stack up as the cost-of-living crisis continues,” Mrs Reardon said.
“The cost of food increased by more than 14 per cent betweenDecember 2021 and December 2023, and while we’ve had inquiries this year, farmersare still receiving prices below the cost of production for their produce.
“This means farmers are struggling to afford to produce thefood that families are struggling to afford while the grocery giants suck allthe profit out between the paddock and plate.”
As several inquiries into supermarket behaviour continued, MrsReardon said meaningful competition reform had to be a major priority for thefederal government, with emerging issues such as banking and airlinecompetition presenting problems.
“Australians expect a fair go, but there are businesses outthere making billions while people struggle, and that’s just not right,” MrsReardon said.
“The ugly truth is out there, and we need real action, realconsequences and real powers for our consumer watchdog, because these businesseswill only keep lining their pockets until we pull them up.
“In the short term, a mandatory, enforceable Food and GroceryCode of Conduct – as well as new divestiture powers as a tool to bust apartsupermarkets for bad behaviour – is what we desperately need to hold thesemiddlemen and their actions to account.”
