Retailers on watch over pricing

With the potential for three separate inquiries into Australia’s supermarkets, vegetable growers are hoping “power imbalances” can be fixed.

Momentum for an ACCC investigation into Australian supermarket price setting is building with the federal government discussing the possibility of calling in the consumer watchdog to investigate Coles and Woolworths.

In addition to a Senate inquiry into supermarket pricing and a separate statutory review of the Food and Grocery Code of Conduct, the Albanese government is reportedly closing in on opening the first price-setting investigation of Australian supermarkets in almost 20 years.

However, the ACCC remained tight-lipped about the details of any potential review.

“We have continued to be involved in discussions with the government regarding any role they may ask the ACCC to take up in this area,” an ACCC spokesman said.

Meanwhile AUSVEG chief executive Michael Coote said urgent change was needed for growers.

“We welcome the recent focus from politicians of all persuasions, and at different levels of government, on these important issues – but most growers will tell you they don’t mind what the mechanism for change is, they just need things to improve and improve now,” Mr Coote said.

AUSVEG chief executive Michael Coote. Picture: Supplied

“What we urgently need to see out of all this activity are stronger, effective and enforceable measures that help fix the supply chain power imbalances that disadvantage vegetable growers, because without fair and sustainable prices paid at the farm gate, you will see more and more go out of business.

“In this heightened environment of potential interventions from regulators, we also need to be really careful to avoid unintended consequences that could artificially distort the market to the detriment of vegetable growers. It’s a complex equation and there is a delicate balance to be struck.”

Assistant Minister for Charities, Competition, and Treasury Andrew Leigh did not address if the ACCC will investigate Australia’s supermarket price setting, but said: “Already, we’ve banned unfair contract terms, raised penalties for anti-competitive conduct and established a Competition Taskforce. After a decade of inaction from the Coalition, we’re committed to addressing the competition problems across the economy, and ensuring that consumers get a fair deal.”