The Queensland government has initiated the Select Committee into Supermarket Pricing, with its first session taking place in Bundaberg. This inquiry, targeting the major supermarkets, is conducting part of its hearings in confidentiality to protect farmers from potential retaliation.
Bundaberg, a key agricultural hub, contributes over $1 billion annually in products such as tomatoes, zucchini, macadamias, sugarcane, and sweet potatoes. The inquiry's chair, Tom Smith, noted the necessity of private sessions for growers fearing public backlash from supermarket chains, describing the treatment from some supermarkets as comparable to "mafia tactics." Concerns have been raised about the impact of supermarket practices on local farmers' profits and the broader community.
At the heart of the investigation is the issue of price gouging, with discrepancies between farm gate prices and retail pricing under scrutiny. Testimonies from industry representatives like Trevor Cross of Cross Family Farms and Bree Watson of Bundaberg Fruit and Vegetable Growers highlight the challenges faced by producers, including significant mark-ups by supermarkets on products such as ginger and spinach.
Watson's submission pointed out the stark contrast in pricing, with zucchini bought at $1.47 per kilogram from farmers and sold at $5.90 per kilogram retail. The inquiry aims to address these disparities, seeking a fairer profit distribution and potentially regulating supermarket mark-ups to prevent price gouging, amidst skepticism about the state government's regulatory capabilities and the potential impact on the agricultural sector.
Source: abc.net.au
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