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.