Supermarket senate inquiry: Orchardists say Woolworths, Coles crushing farms

Fruit and vegetables are being rejected by supermarkets for “no reason at all”, orchardists have told a Senate inquiry.

Quality fruit and vegetables are being rejected by supermarkets for “no reason at all”, orchardists have told a Senate probe.

The parliamentary committee examining the market power of Coles and Woolworths held a hearing in Orange, central west NSW, on Tuesday.

NSW Farmers vice president Rebecca Reardon, Cattle Australia chief executive Chris Parker and former Dairy Connect president Graham Forbes all gave presentations to the panel, spearheaded by Tasmanian Greens senator Nick McKim.

But the main focus of session was fruit and vegetables, with Orange-based cherry and apple farmer Guy Gaeta giving an impassioned plea for senators to address the supplier-retailer imbalance.

“They reject fruit for no reason at all,” Mr Gaeta said.

“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.

“They reject cauliflowers for being too big — and lot of customers would be fine with a large cauliflower.

“I can speak with authority, 38 years as a farmer. I go to the markets and see what the market prices are. They’re crucifying apple farmers — if things keep going the way they’re going, in 10 years, we’ll have no family farms, just corporate farms.”

Fellow NSW orchardist Ian Pearce said many of his contemporaries had been forced out of fruit and vegetable production due to retailer conduct.

He said bargain-basement prices paid to orchardists did not take into account surging costs since the start of the decade.

“There’s a lot of skill that goes into growing fruit. If you lose those skills, they don’t come back overnight – if ever,” Mr Pearce said.

“The cost of freight, fertiliser and the cost of electricity — that’s been one of the biggest (financial) killers. Electricity seems to be getting dearer and dearer.”

Another Orange region orchardist, James McClymont, echoed Mr Pearce’s concerns.

He noted he was paid around $2.60 per kilo for Royal Gala apples in 2011 and in September 2023, was paid around the same price for the same type of produce.

“In the space of that 12-year period, labour costs have gone up 50 per cent,” Mr McClymont said.

“You have to make enough money to make a profit and reinvest in the future and with costs rising, you can’t reinvest.

“Whatever that supermarket price is, give or take a bit, everybody has to fall behind. That’s pretty scary. We’re very dependant with apples on the domestic market.”

The senate committee will stage a Victorian hearing in Melbourne on Wednesday, with representatives from the National Farmers Federation, eastAUSmilk and Choice set to make presentations.

The committee is to present a final report by May 7.