“The fact that the majority of the report’s 20 recommendations focus on fresh produce supply chains demonstrates that our concerns were valid,” he 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.
“The ACCC’s conclusion — that major supermarkets’ use of market power could have lasting consequences for efficiency and sustainability — underscores the urgency of action. It’s now critical that these recommendations don’t gather dust.”
Australian Dairy Farmers
ADF president Ben Bennett said the inquiry shows more must be done to strengthen safeguards for dairy farmers, and the agriculture industry more broadly.
“This report backs up what we’ve been saying for years — that the big supermarkets have increased their product margins at the cost of our industry,” he said.
“With the exception of home-brand milk, which the big supermarkets use as a loss leader, we consistently see the retail price of dairy products rise. Yet, right now, dairy farmers are struggling to juggle high input costs with declining farm gate prices.
“The big supermarkets directly sourcing milk from farmers is further eroding market competition, compounding the issues our industry faces.”
With one major supermarket now a dairy processor in its own right, and a review of the Dairy Code of Conduct under way, ADF hopes the government will seize the opportunity to strengthen provisions and protections for farmers dealing with processors.
The Nationals
Victorian Senator Bridget McKenzie said the report was a “flaccid” response from the government.
“I didn’t hear any tough measures that are actually going to put a very strong incentive for supermarkets to behave better. They haven't actually taken a big stick to it,” she said.
Federal Leader David Littleproud said the inquiry was designed for a government about to go to an election.
He said the Albanese Government was not protecting families and farmers against the major supermarket’s profiteering and anti-competitive behaviour.
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