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 Growers defeated in supermarket pulp friction 

Growers defeated in supermarket pulp friction

6/08/2008 6:23:00 AM
In the Hawkesbury Valley - for two centuries the food bowl of Sydney - Adrian Maguire despairs of ever getting reform to what he sees as a malevolent grocery industry dangerously dominated by Coles and Woolworths.

Mr Maguire, 23, has an apple and stone-fruit orchard, Enniskillen, in the beautiful Grose Vale, and says the system denies farmers sustainable prices for their produce.

Shoppers might gasp at their checkout bills, he said, but sometimes the prices he gets don't even cover transport and packaging, let alone the cost of growing and harvesting a crop.

Despite a similar chorus of complaints from farmers across the nation, yesterday the Australian Competition and Consumer Commission inquiry into the grocery industry said it could find no evidence of anti-competitive behaviour by the big supermarket chains towards suppliers of fresh produce.

"When you hear that the ACCC have found [nothing], it really leaves you walking with a limp," Mr Maguire said.

The commission's chairman, Graeme Samuel, warned the National Farmers' Federation in April that he had been presented with no "smoking gun" against Coles and Woolworths, which account for about half of the fresh produce sold in Australia.

The federation's submission said: "There appears to be an increasing gap between farm gate and retail prices. The food supply chain is only as strong as its weakest link, and in this regard, it is vital that all participants are profitable and sustainable in the long term."

The NSW Farmers' Association said: "Increasingly, Australian farmers sell their produce into markets that are dominated by a small number of very large-scale corporations. Individual farmers have very little ability to negotiate fair contractual arrangements, as their customers often have significant resources and use these to their advantage."

However, the commission has concluded: "There is no across-the-board evidence to suggest that retail prices for fresh products are going up by a greater percentage than farm-gate prices. It is certainly the case that the large price increases in many fresh items over recent years cannot simply be attributed to the retailers.

"For a good proportion of fresh products, farmers have the option of selling to export markets or wholesale markets (which in turn supply independent supermarkets, butchers and greengrocers)."

The Maguires and many others belong to Hawkesbury Harvest, which promotes farm-gate sales direct to consumers, producing better returns for farmers.

Hawkesbury Harvest has begun a providore service, delivering to Sydney restaurants, and runs farmers' markets at Castle Hill and Rouse Hill, with a third soon to start in the city.

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Comments


Date: Newest first | Oldest first
It was a bit sad to see that the farmers couldn't provide evidence against Cole and Woolies prices. Farmers are screwed at the farm gate.

Soon Coles and Woolies will have to source their product from NZ and China and Thailand, not a good outcome for all concerned.

But it will happen if this is allowed to continue.

Posted by Matt on 8/08/2008 1:46:20 PM

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