The dominance of Coles and Woolworths in Australia's grocery sector is under investigation, with a parliamentary committee initiating hearings in Hobart to explore the implications for consumers and producers. The inquiry has heard allegations of price gouging by these supermarket giants amid rising cost of living and grocery bills. TasFarmers' Nathan Calman highlighted the challenges faced by producers due to the supermarkets' influence on supply chains, expressing concern for the sustainability of businesses and future generations within the industry. He criticized the supermarkets' ability to depress prices paid to producers while increasing consumer prices, describing a system that operates to the detriment of both ends of the supply chain.
Jeremy Griffiths from the National Farmers Federation's horticultural council echoed these sentiments, pointing to the significant impact of the Coles and Woolworths duopoly on the sector. He advocated for the Australian Competition and Consumer Commission to have the authority to scrutinize the pricing data of supermarkets. The ongoing inquiry by the commission aims to determine if consumers are overpaying for groceries. Griffiths also highlighted the discouraging effect of low produce buying prices on new entrants to agriculture, emphasizing the broader economic implications and calling for policies to prevent the formation of such duopolies.
Source: aap.com.au
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