The National Farmers’ Federation (NFF) has welcomed the release of the Australian Competition and Consumer Commission’s (ACCC) Supermarkets Inquiry Final Report, which they say confirms that market imbalances could have long-term consequences for Australia’s fresh produce sector.
NFF President David Jochinke said the report’s independence and thorough evidence gathering reinforce concerns raised by producers.
“The fact that the majority of the report’s 20 recommendations focus on fresh produce supply chains demonstrates that our concerns were valid,” Mr Jochinke said.
“For two years, debates have raged about supermarket market power, but this independent report provides clear confirmation: fresh produce suppliers are facing serious, real challenges.
“While not all agricultural commodities are affected, fresh produce suppliers have been particularly vulnerable to market imbalances, information asymmetries, unclear supply and demand forecasts, and buyer incentives that undermine competition.
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“The ACCC’s conclusion - that major supermarkets’ use of market power could have lasting consequences for efficiency and sustainability - underscores the urgency of action.”
The NFF and its members, including the NFF Horticulture Council, played a key role in establishing this inquiry and providing evidence.
“It’s now critical that these recommendations don’t gather dust. We welcome the Government’s in-principle support for all recommendations and call for bipartisan commitment to their implementation,” Mr Jochinke said.
“Whoever forms the next Government must work closely with fresh produce suppliers to ensure these recommendations deliver meaningful change.
“We also acknowledge the Government’s $2.9 million commitment to producer education on rights and protections - an important industry priority.”
Jolyon Burnett, chair of the NFF Horticulture Council, said the report must serve to establish better and continuously improving trading practices in fresh produce that ultimately put more money in the back pocket of hard-working growers.
“What is clear reading the report is that the relationship between supermarkets and fresh produce suppliers has been unfair, and too often exploitative and abusive," he said.
“Sometimes you need to hear from an impartial observer, outside a relationship, before you realise the extent to which it’s been unhealthy.
“We hope more than anyone, that supermarket senior executives and boards sit with this report, absorb its findings and conclusions, and use it to proactively turn a corner in terms of their practice and culture.
“The Council needs to thank the ACCC for quite obviously listening to growers and their representatives. Many of the recommendations concerning fresh produce supply, in part or total, have been advanced by the Council and its members.
“So, we are glad the Federal Government has seen fit to accept them all in principle. But of course, these wouldn’t be the first ACCC recommendations to be left on the shelf.
“The Council will work hard with the Federal Government to ensure advanced protections are enshrined in the Food and Grocery Code of Conduct or otherwise put in place as soon as possible.
“We will also continue dialogue already initiated with major supermarkets to identify and remediate those trading practices not recommended for reform in the report but still detrimental to a fair and efficient fresh produce market.”
