Parliamentary probe into supermarket ‘price gouging’ to continue in Orange

A cherry farmer who quit the industry has warned more are cottoning on to the unfair pricing practices of major supermarkets and will follow his lead.

A former cherry farmer who quit the industry claims he lost out on almost $85,000 by the major supermarkets.

Michael Cunial, from Orange, said he had lost substantial money on seven deliveries of his produce to Coles and Woolworths, and in one instance he had expected $90,000 for 15 tonnes of cherries but received just $5800 on the seconds market.

Although the produce was rejected because it did not meet specifications, Mr Cunial said more and more farmers were cottoning on to the unfair pricing practices of the major supermarkets and would follow his lead in leaving the industry.

Fellow Orange-based cherry and apple farmer Guy Gaeta, who will speak at the next round of public hearings for the senate committee investigating price gouging when it rolls into the rural NSW town on Tuesday, described Mr Cunial as “one of the lucky ones” for getting out.

A senate inquiry examining pricing practices of Coles and Woolworths will hear from Orange-based producers on Tuesday. Picture: NCA NewsWire / David Mariuz

“I’ve been working in Orange for 38 years, and over the past 30 years I’ve seen about 200 farmers walk away with nothing, after working and selling their crops every day,” Mr Gaeta said ahead of the hearing.

“People don’t understand how ruthless the supermarkets are.

“Just to sell a zucchini it has to be perfectly straight – pretty soon they will expect bananas to be straight, believe me.”

The Greens-led parliamentary probe is currently examining the price-setting and competition practices of Australia’s two major supermarket chains, amid allegations of corporate profiteering and price gouging of both consumers and suppliers.

The companies — which maintain a 65 per cent market share — have denied the allegations, and claim their recent profits are the result of in-store productivity improvements rather than taking advantage of suppliers.

Farmers claim they are being ripped off by the two major supermarkets. Picture: NCA NewsWire / Flavio Brancaleone

Nationals senator Ross Cadell, who sits on the senate committee, said Labor needed to listen to the plight of farmers caught in the supermarket chains’ crosshairs.

“The inquiry in Orange that I am part of today is important because prices impacting farmers ultimately end up impacting prices at the checkout,” Senator Cadell said.

“The Nationals will continue to fight for fairness for both farmers and families.”

During a round of hearings in Tasmania last week, local farmers demanded that a forced split of Coles and Woolworths should not be ruled out.

“The moment you take it off the table, you are essentially giving a licence to print money to the existing duopoly,” Jeremy Griffith from the National Farmers Federation said last week.

Anthony Albanese has ruled out the proposal to break up the supermarket giants.

“We have a private sector economy in Australia, and not a command and control economy. We’re not the old Soviet Union,” the Prime Minister told ABC radio in February.

Senator Cadell said it was disappointing Mr Albanese had already ruled out divestiture powers, even though the inquiry was still hearing from growers.

Originally published as Parliamentary probe into supermarket ‘price gouging’ to continue in Orange