‘Keep them in check’: Calls to turn consumer watchdog on supermarkets over meat price

There are calls to turn the consumer watchdog onto supermarkets to ensure the falling prices for beef and lamb are passed onto shoppers quickly.

The consumer watchdog should be set after supermarkets to ensure falling prices of beef and lamb are passed on quickly at the supermarket shelves, Nationals leader David Littleproud said.

He said a proper price monitoring inquiry and tough penalties are needed so retailers know they are being watched now, to ensure savings are immediately passed on to families feeling the pinch of cost-of-living.

The Albanese Government has already launched a Food and Grocery Code review into the issue, but Agriculture Minister Murray Watt said the big supermarkets should not wait on the results to pass on fair prices at the checkout.

Mr Littleproud’s calls follow beef prices remaining high at the supermarket shelves despite cattle prices dropping by almost two-thirds, while lamb prices have just started coming down after a 70 per cent fall at the saleyards.

Nationals leader David Littleproud. Picture: NCA NewsWire / Martin Ollman

Mr Littleproud said Senator Watt, via Treasurer Jim Chalmers, should urgently direct the Australian Competition and Consumer Commission to hold a price inquiry.

“The review will take two years to complete. The ACCC need to be resourced so they can lean in, particularly on supermarkets,” he said.

“It’s a way we could keep supermarkets in check.

“Cattle prices dropped basically overnight … You have to be a bit sceptical about how the supermarkets have been pricing this.”

Mr Littleproud said a farmers payment for cattle had dropped from $10.21/kg to $3.65/kg in the past year, but at the supermarket grass-feed rump steak still cost $36/kg, beef rump roast was $25/kg and grass-fed beef mince was $19/kg.

AgForce CEO Mike Guerin said while he welcomed a review into what was happening with the prices, adding another cop on the beat may just add to bureaucracy and costs.

“We need to get to the bottom of what’s going on with prices,” he said.

Agriculture Minister Senator Murray Watt. Picture: Matthew Poon

Coles and Woolworths this month temporarily dropped the retail price of its lamb by 20-36 per cent, following the release of the terms of reference for the Food and Grocery code review the previous month.

Senator Watt said he welcomed the relief for consumers and called on other big supermarkets to follow suit.

“When farmers are getting lower prices due to oversupply and drier conditions, consumers should see some cost of living relief on the shelves,” he said.

“Looking ahead, our Food & Grocery Code review will take a close look at the transparency that producers and others get in our food supply chain.

“But as I’ve said before, supermarkets shouldn’t wait until that review is finalised to offer fair prices on shelves.”

A Woolworths spokeswoman said the saleyard price drops being quoted did not reflect the reality of its supply chain.

“We’re currently paying our long term suppliers more than the industry market indicators for both beef and lamb. We honour the price commitments we make to our long term farmers and livestock agents and we don‘t jump to take advantage of lower spot prices,” he said.

Coles general manager of meat, deli and seafood Martin Smithson acknowledged it had been a tough time financial for many Australians and were committed to lowering prices.

“We have thousands of specials each week at Coles and both beef and lamb have seen reduced prices in recent weeks offering great value for our customers,” he said.