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Exchange ratesmore »
AU: Coles says price war good for growersThere have been fears, over the past few weeks, of the price war between Coles and Woolworths harming growers. The supermarkets have insisted all along that this will not be the case, and now Coles is saying that the opposite is true - that the price war is good for growers.
Coles says reduced prices are providing growers with an outlet for their surplus production this year.
The chain says that since it began reducing prices in fresh lines in February carrot sales have increased 236% grapes 886% and rockmelons 616%.
William Churchill, from AusVeg has agreed that the discounted prices are helping to keep vegetable sales flowing.
"I haven't had growers come to me complaining that they are getting ripped off at the moment.
"And a lot of growers out there have been happy to get rid of their over supply.
"So for now, things seem to be working OK.
"But the question remains, what happens when growers have gotten rid of their oversupply and they're wanting to start getting premium prices for their products?"
Publication date: 4/2/2012
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