The Coalition Government yesterday announced a historic inquiry by the Australian Competition and Consumer Commission (ACCC) into the domestic fresh food and dairy supply chain to ensure farmers receive a fair go.

Federal Member for Cowper Pat Conaghan has welcomed the three-month ACCC independent inquiry into the supply chain for fresh foods such as meat (beef, lamb, pork, chicken), eggs, seafood, fruit and vegetables as it will help to ensure producers are treated fairly by the major retailers.

“Our Liberal-Nationals Government is committed to fighting for a fair go for our farmers and this inquiry is in response to long held concerns about bargaining imbalances that currently exist and the misuse of this power by some sections of the fresh food supply chain,” he said.

“Our farmers take considerable risks and work incredibly hard to grow the fresh and affordable food we enjoy on our plates every day.

“But we are concerned that once farm produce is harvested and is sent off to market, producers have very little bargaining power and are at the mercy of the powerful supermarkets when it comes to the price they are paid.

“Unfortunately, not all interactions between farmers and the major supermarkets are conducted fairly and in good faith and there are bargaining imbalances and other serious issues that need to be looked at.

“I thank the Treasurer Josh Frydenberg and Minister for Agriculture David Littleproud for requesting this inquiry.”

The ACCC will undertake the inquiry and will report back to the government by the end of November 2020. This will include recommendations to government to address any identified bargaining power imbalances in the supply chains for perishable agriculture goods, and identify any current shortcomings in the system.

The inquiry by the ACCC will take into account the Australian Government’s long-standing policy that it does not regulate prices along the supply chain.

Importantly producers on the Mid North Coast and farmers across all food producing sectors will be given an opportunity to submit evidence, raise concerns and share their own experiences during the inquiry. The ACCC has guaranteed that the inquiry will accept confidential submissions so that farmers can provide evidence of harmful practices without the fear of punishment and retribution by the major supermarkets.

The ACCC will also review the Dairy Industry Code of Conduct, which commenced on 1 January 2020, to identify any market power imbalances that exist across the domestic dairy supply chain that have not been addressed in the code.

For more information visit the ACCC’s website here.