Grocery giants armed with an explanation for Premier

Supermarket giants will meet with Steven Miles about the ‘widening gap’ between the prices farmers receive for produce and what customers pay at the checkout.

Supermarket giants will meet with Queensland Premier Steven Miles armed with an explanation about the “widening gap” between the prices farmers receive for produce and what customers pay at the checkout.

Mr Miles wrote to the bosses of Coles, Woolworths, IGA and ALDI on Friday to seek a meeting about the issue, noting the two major supermarkets were making significant profits.

Coles and Woolworths, while welcoming a meeting with the Premier, have publicly defended their pricing structure.

A Woolworths spokesman said the company was liaising with the Premier’s office to find time for a meeting.

“For the majority of the fruit and vegetables we buy, we work collaboratively with our suppliers to forward-plan and ensure we will have the right volume to meet our customers’ needs,” he said.

“We pay farmers the market price for their produce, which can vary throughout the year due to weather, seasonality, supply and demand.

“We’re always working to strike the right balance to ensure our customers have access to high quality and affordable fresh produce, while also ensuring our suppliers receive a fair market price.”

Premier Steven Miles will meet with supermarket bosses within weeks. Photo: Office of the Premier/ Annette Dew

A Coles spokeswoman also said the company would meet with Mr Miles “to engage in an informed discussion on the factors that influence prices customers see at the checkout”.

“These factors include a range of costs such as construction costs, energy prices, logistics and packaging costs, as well as inflationary pressures,” she said.

A spokesman for Metcash – which operates the IGA brand – said the company welcomed Mr Miles’ effort to deliver value for consumers and support farmers.

“We have previously called out that we believe dominance in the retail sector has an impact on pricing, and that stronger competition laws would lead to benefits for shoppers,” he said.

“Metcash is different to the major supermarket chains in that we are the wholesaler to a network of independent supermarkets that are mostly family-owned and run by locals for locals.

“Many of them work with local suppliers and producers directly, and on average they hold relationships with around 30 suppliers in addition to Metcash.”

LNP cost of living spokeswoman Deb Frecklington hoped the supermarket giants would listen to Mr Miles, but questioned what outcomes he could secure.

“Anything the Premier of the state can do to ease the cost of living burden on Queensland is well and good, but the Premier should be focusing on issues that he can actually deal with … lowering people’s electricity bills, lowering their water bills, making sure they can put food on the table,” she said.

Originally published as Grocery giants armed with an explanation for Premier