The big supermarkets wield so much pricing power that they are forcing growers to sell fruit below the cost of production, creating “an unsustainable situation” for farmers and customers, an industry group has warned.

Fruit Growers Victoria, which represents apple, pear and stonefruit growers and packing sheds from Goulburn Valley to the Mornington Peninsula, told the Senate inquiry into supermarkets that growers must accept the “predatory” prices forced upon them because they need the cash flow, or are afraid of retribution.