Farmers threaten to walk away as Coles, Woolworths turn $1bn profits

Farmers have demanded fresh action amid concerns the major supermarkets are ripping Australians off by increasing prices.

Australia’s peak farm body says the consumer watchdog should be given more power to investigate supermarket prices.

The National Farmers Federation has enthusiastically backed the call for the Australian Competition and Consumer Commission to launch an inquiry on the cost of fruit and vegetables.

But NFF President David Jochinke said he wanted to see the ACCC be given “some more teeth” to investigate outside of a formal request to hold an inquiry.

“At the moment, the ACCC can’t force people to give them information unless the treasurer allows them to do that through an inquiry process,” he said.

The ACCC needs more teeth to investigate on its own, the NFF says. Picture: Supplied

“They need to have more strength and more ability to actually investigate these concerns when they raised o that when we talk about the price of food, when we talk about the cost price squeeze on the average Australian and then also what is a fair price on agriculture, they can kick into gear.

“They can kick into gear and actually get in and pop the lid on this and have a look for us because we can’t keep having to ask them to do this.

“They need to be able to do it on their own volition.”

It comes as the Nationals ramped up their call for the ACCC to hold an inquiry amid farmers’ threats to close up shop and stop supplying supermarkets.

While Coles and Woolworths both recorded profits of more than $1 billion last year, morale among fruit and vegetable growers is at an all time low, with 30 per cent of them considering leaving the industry this year.

Nationals Leader David Littleprouds said that supermarkets are making record profits off the back of hard-done-by farmers.

Nationals leader David Littleproud wants the ACCC to launch an inquiry into fruit and vegetables over fears farmers are being price gouged out of the industry. Picture: NCA NewsWire / Martin Ollman

“I previously called for an ACCC Inquiry into beef and lamb but it must also now investigate fruit and vegetables – we need to investigate the price disparity, compel CEOs to give evidence and have greater penalties for those who do the wrong thing, including not paying farmers a fair price,” he said on Sunday.

It comes as Queensland Premier Steven Miles added his name to the call, penning a letter to chief executives from Coles, Woolworths, IGA and Aldi asking to meet with them.

“I write to raise my growing concern about a widening gap between the prices farmers receive for their produce and the prices customers pay at the checkout in your supermarkets,” he said.

Mr Littleproud said he was buoyed by the stories of farmers like Victorian Ross Marsolino, who has said he was prepared to walk away from his 80-acre zucchini crop if he didn’t start getting a fair price – $2 a kilo.

“We will walk away from the whole farm this year if we have to. I have 50 workers who will have to go and find another job,” Mr Marsolino said.

Victorian farmer Ross Marsolino is prepared to walk away from his zucchini crop if he doesn’t start getting a fair price from supermarkets. Picture: Supplied

“The supermarkets are buying our product for $1.80 a kilo but then retailing them for $4.99 a kilo, when in reality, our product should be selling for under $3 a kilo.

“The more you produce, the more you lose. They (supermarkets) dictate the price and I have no confidence in supermarkets anymore.”

Far North Queensland melon farmer Shaun Jackson has warned Australia will “run out of food” as more farmers stop selling to supermarkets.

“It’s not just me. We are on the precipice of losing 30 per cent of farming – which is 30 per cent of food – if we don’t fix it,” Mr Jackson said.

Melon farmer Shaun Jackson said Australia was at risk of losing almost a third of farmers.

Agriculture Minister Murray Watt he’d been calling on supermarkets “for months” not to profiteer.

“It’s good to see the Nationals now adding their voice to the chorus. If they had done something about it while they were in government for 10 years, we would all be better off now,” Senator Watt said.

“We’ll continue applying pressure to the big supermarkets through a senate inquiry this year.”

In addition to the senate inquiry into supermarket prices, the government has also launched a review into the Food and Grocery Code, which focuses on increasing transparency around how much suppliers are being paid.

Agriculture Minister Murray Watt said the government was taking the matter seriously. Picture: NCA NewsWire / Martin Ollman

Outside of parliament, the Australian Council of Trade Unions has launched their own inquiry into price gouging and unfair pricing practices.

While the ACCC have the power to independently launch an investigation, it’s a matter for government as to whether or not to direct the watchdog to begin the process.

The government supports the idea of an ACCC inquiry, but queries what such a review would achieve that the other two inquiries won’t.

Senator Watt said supermarkets had been put on notice.

“In recent months we’ve seen price reductions for some products, but more is needed,” he said.

“Supermarket chains shouldn’t wait for these measures to wrap up. They should offer fair prices on their shelves immediately.”

Originally published as Farmers threaten to walk away as Coles, Woolworths turn $1bn profits