Farmers and advocates address parliamentary probe into supermarket pricing

Queensland farmers have revealed the impact of alleged “mafia” tactics being used by the big four supermarkets, leaving them in some cases with to throw out almost half their crops or use excessive fertiliser to satisfy ‘big’ fruit demands.

Farmers told the parliamentary committee their mental health was suffering and up to 40 per cent of their crop was being wasted due to the ‘stand over tactics’ used by the Big 4 supermarkets.

A farming culture of fear, waste and unsustainable prices due to “mafia tactics” was laid bare in the first public hearing in the parliamentary probe into supermarket price gouging in Bundaberg on Monday.

The supermarket pricing select committee, chaired by ALP Bundaberg MP Tom Smith, heard submissions from local growers and farming advocates in addition to the newly elected mayor of Bundaberg and representatives of agricultural and business peak bodies.

Agronomist and farming advocate Judy Plath said supermarkets had “trained” consumers to accept only unblemished and oversized produce which was driving waste and squeezing the bottom line of farmers, estimating around 30-40 per cent of farmers’ crops are regularly wasted due to being outside supermarkets’ specifications.

Agronomist and farming advocate Judy Plath used props to demonstrate how supermarkets were driving a consumer culture of large and unblemished produce which was driving up costs and waste for farmers.

Brandishing props including capsicums and bananas, Ms Plath told the committee supermarkets were forcing consumers to buy large bananas due to the larger cost per kilo, causing farmers to spend more on fertilisers and then fall afoul of government environmental regulations restricting their use.

“The government says you just need to cut back on your fertiliser and chemicals because you’re harming the environment, but Coles and Woolies won’t buy your product unless you use that fertiliser and chemical at those rates,” Ms Plath said.

“So the farmers are stuck in the middle, they can’t please anybody.”

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In her 25 years working with farmers, Ms Plath said the “bully boy” tactics used by supermarkets had affected the mental health of farmers and made them reluctant to speak out for fear of the supermarkets blocking their supply, leading to produce rotting in warehouses and paddocks.

“(Farmers) are scared to talk about what supermarkets do to farmers,” she said.

“Any farmer who speaks out against supermarkets will suddenly find themselves with a lot of perishable product they can’t sell.

“That’s the kind of bully boy tactics that the supermarkets use on a day-to-day basis in Australia.”

The supermarket pricing select committee heard submissions from local growers and farming advocates in addition to the newly elected mayor of Bundaberg and representatives of agricultural and business peak bodies.

Trevor Cross of Cross Family Farms said he had been forced to waste 4000 tonnes of pumpkin because the market price made it unviable for him to transport the produce to the supermarkets’ distribution centres.

Mr Cross said overgrowing was common throughout the industry in response to large orders from the supermarkets, who will say the produce does not meet their specifications if there is insufficient demand from consumers.

“If the supermarket wants it and it’s all pushing through the shops they will take what they have ordered, but if not they’ll just say there’s something wrong with it,” he said.

Speaking at the conclusion of the hearing, Mr Smith said the submissions heard by the committee testified to “mafia style tactics” being employed by the supermarkets.

“It’s absolutely standover tactics, and it’s time that stopped,” he said.

“And that’s what this committee is about, making sure that we are committed to ensuring that our farmers get a fair go.”

Trevor Cross of Cross Family Farms said low farm gate prices forced him to waste 4000 tonnes of pumpkin which was unviable to transport to the supermarket distribution centres.

After further public hearings in Cairns and Yarrabah the committee will hold secret hearings in Brisbane that can be joined remotely by farmers around the state who do not want to make any public submissions.

“We know that there are farmers out there who are waiting to put their name to the practices that are going on against them in case they lose out,” Mr Smith said.

“That way we also know that we can give the full and frank reality of what the supermarkets are doing to our farmers.”

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Mr Smith said at the conclusion of the public hearings, he expected representatives from the “big four” supermarkets (Woolworths, Coles, Aldi and IGA) to appear before the committee.

“They’ll be down there in Queensland parliament, and we will be given them what for and they need to explain why is it okay that they can get a new Maserati each year, but our farmers are battling just to make sure that their crops are actually going on to the kitchen table,” he said.