ACCC Launches Inquiry into Supermarket Prices, Farmers and Consumers Await Transparency
Source: The DairyNews
The Australian Competition and Consumer Commission (ACCC) has initiated a 12-month inquiry into supermarket prices, focusing on potential price gouging and the fairness of paddock-to-plate pricing. Farmers welcome the move, anticipating greater transparency from major retailers.
NFF president David Jochinke commended the ACCC's involvement, emphasizing the need for a clear understanding of pricing dynamics benefiting both farmers and consumers. The inquiry follows allegations of supermarkets increasing prices on fresh produce while paying farmers and suppliers less.
ACCC deputy chair Mick Keogh emphasized that the inquiry would "forensically" examine competition between supermarkets, supply chain margins, and the impact of online retailing. The concentration of market power in the hands of Coles and Woolworths will be a significant focus, addressing concerns about their dominance pushing out other competitors.
Keogh highlighted the success of previous ACCC inquiries, citing the dairy industry review in 2018 that led to significant changes. He expressed confidence in the current inquiry delivering meaningful results.
NFF's Jochinke urged the government to act on the inquiry's outcomes, emphasizing the need for sustained political leadership and action, citing past reports that have gathered dust on shelves.
Federal Nationals leader David Littleproud accused the government of being "shamed" into the inquiry and urged swift action to address farmers' and consumers' concerns. Woolworths CEO Brad Banducci pledged cooperation, acknowledging the pressures on household budgets, while Coles stated its readiness to illustrate its value to customers and positive relationships with suppliers.
The ACCC's inquiry runs parallel to a review of the grocery code of conduct overseen by former Labor minister Craig Emerson and a Senate inquiry, reflecting a comprehensive approach to addressing concerns in the supermarket industry.
ACCC deputy chair Mick Keogh emphasized that the inquiry would "forensically" examine competition between supermarkets, supply chain margins, and the impact of online retailing. The concentration of market power in the hands of Coles and Woolworths will be a significant focus, addressing concerns about their dominance pushing out other competitors.
Keogh highlighted the success of previous ACCC inquiries, citing the dairy industry review in 2018 that led to significant changes. He expressed confidence in the current inquiry delivering meaningful results.
NFF's Jochinke urged the government to act on the inquiry's outcomes, emphasizing the need for sustained political leadership and action, citing past reports that have gathered dust on shelves.
Federal Nationals leader David Littleproud accused the government of being "shamed" into the inquiry and urged swift action to address farmers' and consumers' concerns. Woolworths CEO Brad Banducci pledged cooperation, acknowledging the pressures on household budgets, while Coles stated its readiness to illustrate its value to customers and positive relationships with suppliers.
The ACCC's inquiry runs parallel to a review of the grocery code of conduct overseen by former Labor minister Craig Emerson and a Senate inquiry, reflecting a comprehensive approach to addressing concerns in the supermarket industry.
