Premier Steven Miles to grill Woolies, Coles bosses over high supermarket prices

The Prime Minister has joined Steve Miles in venting his frustration at the big supermarkets over a “discrepancy” in the amount farmers are paid and what shoppers are forking out.

Steven Miles will grill the executives of the nation’s largest supermarkets in a landmark meeting on Thursday.

The looming meeting comes as Anthony Albanese reveals he’s not buying the supermarket giants’ price justification as the government weighs up whether to force the companies to expose any discrepancy.

Following reporting in The Courier-Mail on Monday, which revealed the cost of groceries had doubled in just three years, the Queensland Premier revealed he would ask the supermarkets for an explanation why people were paying more for food.

“Most of them have confirmed they can meet with me on Thursday, where we’ll have that discussion,” Mr Miles said.

“I hope that in the very least, the scrutiny that will put on them will encourage them to be more up-front with consumers and do everything that they can to make good food as affordable as possible.

Woolworths made a $1.6bn profit in the last financial year. Picture: NCA NewsWire/Roy VanDerVegt

“These grocery stores are making big profits and those profits are coming from reduced farm-gate prices for farmers and increased costs of food for Queensland families.”

The Prime Minister vented his frustration at the big supermarkets on Monday to convince voters the cost-of-living crisis was his main priority.

“I think the problem for the big supermarket chains is that when people look at the prices that they’re paying off the farmers, and then look at what the prices they’re charging, is that people can see there’s a discrepancy there,” Mr Albanese said.

“People look at the profits the supermarkets are making, people know there is effectively a big duopoly who have considerable market power.”

Coles made a profit of more than $1bn during the last financial year. Woolworths reported a $1.6bn profit during the same period.

Both have repeatedly denied engaging in price-gouging.

Coles made a profit of more than $1bn during the last financial year. Picture: AAP

A Woolworths spokesperson said the supermarket would continue to deliver savings to customers “as we start to see the rate of inflation ease”.

“We are committed to offering our customers value while working with our suppliers to sensitively manage economy-wide pressures,” they said.

A Coles spokesman said the company was focused on “keeping the price of food and groceries low for our customers, while paying our hardworking farmers and producers fairly”.

Asked directly whether he believed the supermarkets’ spin, Mr Albanese said it was clear.

“I think there is a discrepancy there,” he said. “Simple as that”.

Mr Albanese met former trade and competition minister Craig Emerson and Treasurer Jim Chalmers on Monday morning to discuss the direction of Dr Emerson’s inquiry into the food and grocery code.

Former trade and competition minister Craig Emerson will head the inquiry into the major supermarkets’ food and grocery code. Picture: Andrew Taylor

The supermarket giants have been warned the code could be made mandatory and government intervention was an option should they fail to pass on lower prices.

Currently, the code is voluntary and it governs how Coles, Woolworths, Aldi and Metcash – which owns IGA – interacts with suppliers and customers.

Dr Chalmers is also considering whether to pull the trigger on a price inquiry to be run by the Australian Competition and Consumer Commission.

It would grant the commission the power to compel the supermarkets to reveal what they pay for produce.

A separate Senate inquiry, established by the Greens, is also set to probe allegations of price-gouging by the major supermarkets.