Supermarket inquiry: Nick McKim calls for farmer submissions

Dairy farmers and other primary producers are being urged to have their say on dealing with supermarkets ahead of a senate inquiry into the retailers.

Dairy farmers and other primary producers are being urged to contribute their stories to a senate inquiry into supermarkets.

The senator who spearheaded the call for the inquiry, Nick McKim, told The Weekly Times that farmer feedback would give a pertinent perspective to the parliamentary probe.

For the first time, a select senate inquiry will scrutinise the impact of market concentration on food prices and the pattern of pricing strategies employed by the major supermarkets.

Senator McKim said the inquiry would also assess the rise in essential item prices, whether advertised discounts were genuine, and retailer profits compared to producers.

“We want to understand whether the supermarkets are price gouging their customers,” the Tasmanian Greens senator said.

“In particular we want to understand whether the concentration of market power of Coles and Woolies is allowing the them to put up prices by more than they should.

“We’re getting a lot of contact from farmers who sell to the supermarkets who say they’re not getting a fair price.

“The $1 a litre milk period was a good example of how farmers have been hurt by the lack of supermarket competition in Australia. We want to hear from dairy farmers about their experiences with supermarkets and get a clearer picture of how they feel the retail sector has impacted their businesses.”

Coles chief executive Leah Weckert and Woolworths chief executive Brad Banducci will front the inquiry, while Aldi is yet to announce whether its Australian boss will appear.

A Coles spokeswoman said: “It’s still early days, but Coles will make a submission by the February due date.”

A Woolworths spokeswoman said their fruit, vegetable and meat categories were in deflation, with lower retail prices than this time last year.

“We welcome the opportunity to explain how we have been working to balance the needs of consumers and suppliers through this inflationary period,” the spokeswoman said.

“We will do so at the inquiry next year.”

Aldi was contacted by The Weekly Times for comment.

Earlier this month, National Farmers’ Federation president David Jochinke welcomed the parliamentary probe.

“We know what Australians are paying at the checkout, and we know what we’re receiving as farmers – but who clips the ticket in the middle is shrouded in secrecy. We’d like to see a lot more transparency,” Mr Jochinke said.

Initial hearings are scheduled to take place in early 2024 with the committee to present a final report by May 7.