In Australia, the government's recent release of a draft for the Competition and Consumer (Industry Codes – Food and Grocery) Regulations 2024 has sparked debate. This draft, aiming to amend the Food and Grocery Code of Conduct, has been met with criticism from the National Farmers Federation (NFF) Horticulture Council for not adequately addressing the power imbalance between supermarkets and fresh produce growers. Despite recognizing the effort to make the code mandatory for large grocery entities, the NFF expressed disappointment over the exclusion of Bunnings and highlighted the draft's use of ambiguous terms, which they believe could lead to exploitation of loopholes by supermarkets.
Jolyon Burnett, chair of the NFF Horticulture Council, pointed out that the draft's language around requirements for supermarkets to communicate expectations and changes to suppliers lacks precision, potentially allowing supermarkets to sidestep accountability. Concerns were raised about supermarkets' practices that could undermine growers, such as adjusting orders or manipulating prices, thereby impacting growers' income and market stability.
The NFF has officially stated its inability to support the current draft of the Food and Grocery Code of Conduct, calling for revisions to ensure clearer and more stringent regulations that would prevent supermarkets from engaging in unfair practices against fresh produce suppliers.
Source: The New Daily