In Australia, a Senate inquiry is addressing the impact of supermarket pricing on the agriculture sector, with a focus on the practices of Coles and Woolworths. Farmers have expressed concerns over the unsustainable prices offered by these supermarkets for their produce.
Orchard owner Guy Gaeta highlighted the issue, stating that the low purchase prices set by supermarkets threaten the viability of family farms. Gaeta, who has grown apples and cherries in Orange, New South Wales, for more than three decades, soon found his voice as he accused supermarkets of running "rejection regimes" to refuse produce, with no recourse, and of driving down the prices paid to suppliers, while hiking prices on shoppers. Ian Pearce, another orchard farmer, echoed these sentiments, pointing out the stagnant prices for goods despite rising labour costs.
The inquiry also heard proposals for legislative reforms to enhance market competition and address the concentration of market power held by the major supermarkets. This includes suggestions for divestiture powers to dismantle the dominant market share of these supermarkets. The inquiry continues to explore the dynamics between supermarket practices and their effects on the agriculture sector.
Source: aap.com.au
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