ACCC vows to keep up the pressure on supermarkets

Ms Cass-Gottlieb told the group the watchdog would continue to maintain a focus on issues within the supermarket sector, including supply chains.

“We also heard of Australian farmers and small businesses who were concerned by an imbalance of bargaining power between supermarkets and suppliers,” she said.

“We will also be prioritising competition issues in the supermarket and retail sector ... that impacts small business.”

Farmers also welcomed the ACCC chair confirming some of the $30 million allocated to the ACCC last year to investigate consumer-facing issues in the sector, would be also used to investigate the unfair treatment of suppliers.

NFF president David Jochinke said it was heartening to see farmers’ concerns taken seriously.

“The ACCC doubling down on supermarket competition is a win for farmers and consumers,” Mr Jochinke said.

“The confirmation funding will be used to investigate supplier concerns is a crucial step towards ensuring fairness.

“The NFF has consistently and publicly raised concerns regarding competition in the retail grocery sector, including the unfair treatment of suppliers, and the ACCC needs the firepower to review food and grocery supply chains.”

NFF Horticulture Council chair Jolyon Burnett also welcomed the ACCC’s commitment.

“The horticulture sector welcomes the ACCC’s compliance and enforcement prioritisation for competition issues in the supermarket and retail sector,” Mr Burnett said.

“This is much needed given that the horticulture industry is particularly vulnerable to the misuse of market power due to the perishable nature of our produce.”

The ACCC’s Supermarkets Inquiry 2024-25 Interim Report highlighted the challenges faced by growers of particularly perishable products, stating that “bargaining positions are likely to be highly unbalanced in favour of supermarkets” for these suppliers.

The ACCC is expected to provide the Supermarkets Inquiry 2024-25 final report to the Federal Government by February 28.