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 Supermarket crackdown needed: Choice 

Supermarket crackdown needed: Choice

07 Sep, 2010 09:20 AM
Choice, Australia’s consumer watchdog, will urge the next Federal Government to establish a supermarket ombudsman to ensure Woolworths and Coles give their customers and farmers a fairer deal.

Nick Stace, CEO of Choice, says the ombudsman should be given sweeping powers to operate a dispute resolutions function, investigate complaints and refer matters to the ACCC.

“Consumers have had enough and so have farmers,” he told this week’s National Farmers Federation annual congress in Melbourne (Coles was one of the main sponsors of the congress).

“Consumers are passionate about doing the right thing by farmers. The two big issues for consumers are food labelling and supermarket competition,” he said.

Mr Stace said consumers cared about country-of-origin labelling because they were worried about local jobs, food safety and “food miles” (imported food being transported large distances which increased greenhouse gas emissions).

Australian farmers were producing the best food in the world and needed a “fair go” so they could continue that job.

He said a mood now existed among consumers around the country for a “better” grocery sector (now dominated by Woolworths and Coles).

Mr Stace alleged some farmers were frightened to criticise the supermarket giants for fear of being “bullied into submission” or paying a heavy business cost through loss of market access.

He also said the supermarkets often made spurious claims that transport costs were to blame for large geographic differences in prices for popular food items such as chicken and tomatoes.

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Set up another overpaid feather-bedded bureaucracy - that should fix the problem. Choice may be surprised to learn the consumers are liars. Despite what they might tell a focus group or reseacher when it comes to decision time, they will buy on price and price alone.
Posted by john from tamworth, 7/09/2010 11:29:49 AM
That may well be the case but what real choice do consumers have anyway? Government needs to step in and force Coles and Woolworths to pay a price that is at least cost recovery for the farmer or we all will be eating vegies grown in China, with made in China stickers on it.
Posted by mad matt, 7/09/2010 5:11:16 PM
Not too many Chinese carrots or Korean apples in Europe or America. Wake up whoever is running this country before we have a big hole in the ground and not much else.
Posted by Mick, 7/09/2010 10:03:14 PM
Consumers are unaware how much degradation they cause from their need for cheap food and how much misery they cause in agriculture. I saw a quote recently: "There is no such thing as cheap good food, there is cheap food and then there is good food."
Posted by Mike, 7/09/2010 10:44:48 PM
You get what you pay for, but food in Australia is more expensive than in the USA. Some consumers will always buy on price, because that is all they can afford. Others want to buy good food, but they struggle to do so. That's why Country of Origin Labelling (COOL) is so vital, and that's why the big chains hate it. If they can sell cheap imports against locally grown food, they open up bigger margins, but COOL slows this. Where are all those useless "rent seeker" farmer lobby groups on the COOL issue? If you think Oakeshott is a dissembler, ask them their opinion on COOL and find out whose pockets they are really in!
Posted by ME Again, 8/09/2010 11:03:14 AM
The ACCC already exists and should step in to do its job of ensuring that food labels are factual, truthful and not deceptive. The Blewett labelling review received over 3,000 submissions, the majority of which supported honest CoOL and labels on all the products of genetic manipulation (GM) techniques. Let's hope their report reflects these public priorities and the new government legislates accordingly. Free marketeers should also support free access to information for that optimises market forces. Well-informed and astute shoppers can do the rest. We want to support our family farmers and Australian processors. Give us a way to do it!!
Posted by Bob Phelps, 9/09/2010 11:05:03 PM
mad matt, that is an absolute brain-dead recipe for driving any industry, especially the agricultural industry, into the ground. Think about it!
Posted by Bushie Bill, 13/09/2010 8:34:48 PM

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