In Australia, Coles and Woolworths are embroiled in a significant dispute concerning fresh produce pricing, as scrutinized by a senate inquiry. The contention pits supermarkets and their advocates against dissatisfied suppliers and consumers, with allegations and contentious exchanges prevalent. Amid the turmoil, fruit growers have publicly disclosed the specifics of apple pricing to highlight the issue.
Current pricing comparisons reveal disparities in apple and pear costs across these supermarkets. For instance, green apples and Pink Ladies are priced similarly at Woolworths, while Coles offers a slight variation in pricing for the same varieties. Notably, the markup on green apples is highlighted as being particularly high, reaching around 100% according to industry claims.
Analysis of last year's data indicates fluctuating markups across different fruits and seasons, with the lowest markup observed for Royal Gala apples in April, attributed to a surplus attempting to be sold off. This seasonal variation in markup suggests a limited storage or importation of apples outside their picking season.
Victoria, a significant producer of Australia's apples and pears, is at the center of this debate. Local fruit growers express frustration over alleged market abuses by supermarkets, claiming pressures to sell fruit below production costs. This situation is underlined in their submission to the senate inquiry, emphasizing concerns over the sustainability of fruit growing under current market practices.
Source: au.finance.yahoo.com