Senator calls for supermarkets to display farm gate prices to fight gouging
Farmers are urging customers not to blame them for soaring grocery prices, as supermarket giants prepare to fall under the microscope.
The federal government will on Wednesday announce former Labor minister Craig Emerson as head of a review into the Food and Grocery Code of Conduct.
The review comes as the major supermarkets, which are bound to the conduct agreement, stand accused of price gouging customers during a cost-of-living crisis.
Dr Emerson worked in several ministerial portfolios from 2007 to 2013 and is well known for singing a parody of the Skyhooksā 1974 hit Horror Movie at a press conference on the carbon tax.
The review, announced in October, is expected to examine whether the supermarket industry code ā which regulates the conduct of retailers and wholesalers towards suppliers ā is helping improve standards of business behaviour in the sector.
It may lead the government to strengthen consumer rights.
Independent MP David Pocock said lack of competition had a ādevastating effectā on farmers and suggested supermarkets display the farm gate price on shelves.
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āIt would be a real reminder for Australians of how little farmers are getting in some cases and can potentially (be) an incentive for the major supermarkets to work with their farmers,ā he told ABC radio on Tuesday.
āIt comes to the government and the parliament to ensure that there are the right laws in place (so) that there is more choice and we see smaller players able to enter the market and not just then be snapped up by these bigger companies who are making big profits while a lot of Australians are really struggling.
āThis is something that we need to deal with, but this is not a new issue.ā
Prime Minister Anthony Albanese said supermarkets had a duty to āmake sure theyāre providing affordable options for all Australians, especially when theyāre making savings on their own costsā.
āWe have been clear ā if the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too,ā he said.
There are growing concerns about the gap between what farmers earn and supermarket prices as the grocery giants posted billion-dollar profits in 2023.
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Agriculture Minister Murray Watt said supermarkets needed to be more open about their pricing arrangements.
āAt the moment, we do see supermarkets have a lot of market power when it comes to their negotiations with farmers and their other suppliers,ā he told ABC Radio on Wednesday.
āThe voluntary arrangements weāve got in place may not be doing enough to ensure that supermarkets are being fully transparent.ā
Senator Watt said falls in the wholesale price of produce should be passed on to shoppers.
āItās just not fair for consumers to be paying high prices for goods at supermarkets when farmers arenāt receiving good prices at the farm gate,ā he said.
āIt makes it very difficult for farmers to work out what kind of price they should be charging for their goods, it leaves them in a very weak bargaining position.ā
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The government will also release one part of the Food and Grocery Code of Conduct review and its response on Wednesday.
The supermarket giants are expected to face a grilling when Coles and Woolworths front a parliamentary inquiry into price gouging, record profits and cost-of-living pressures in the coming months.
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