Australian vegetable farmers leaving in droves, industry groups warn, as supermarket pricing tactics put on full show
Vegetable farmers have told a Senate inquiry into supermarket practices they have reached “breaking point” over pricing.   :( 



News.com.au
March 18 2024

Supermarkets are raking in excessive profits by marking down prices on in-store products and then offering farmers less for the same item, an inquiry has heard.   

Farmers lobby groups and vegetable growers told a hearing in Melbourne on Wednesday retail giants are using their significant market power to set unfair pricing practices to the detriment of food suppliers.

It followed a NSW apple farmer telling the inquiry on Tuesday that he had not received a price increase from the major retailer in over a decade, despite his labour costs rising by over 50 per cent.

“What we are seeing is the price changes in supermarkets are not being reflected in the prices that growers are being offered by supermarkets or the wholesale intermediaries in between them”, Nationals Farmer Federation spokeswoman Charlotte Wundersitz said.

“To a degree, supermarkets are businesses; they pick the price that the consumer pays.

“When it becomes an issue is when supermarkets point to prices in-store as a justification as to why a producer might be getting a lower price.”

Coles posted a $1.1bn full-year profit at its most recent full-year results, while Woolworths lifted its annual profit to $1.6bn.

Earlier, it emerged that millions of dollars worth of fresh vegetables were being wasted annually due to “manipulative” non-binding supply deals allowing retailers to reject stock based on arbitrary grading standards.

According to Peak industry body AUSVEG, this has led farmers to lose up to $30m each year.

Chair Bill Bulmer said growers were at “breaking point” after two years of droughts, bushfires, global supply chain disruptions and Covid-19.


“Vegetable businesses must be paid fair and sustainable prices for that produce. Instead, many growers are under increasing pressure from supermarkets to accept lower and lower prices, with many receiving the same prices they were five, 10 or even more years ago,” he said.

“Positive change is needed to stop more and more growers leaving the industry which will just result in more price increases for consumers.”

Food waste is a major problem in Australia.

Mr Bulmer warned that the country was at risk of becoming a net importer for fresh goods, pointing to survey data from January that showed up to 37 per cent of farmers are considering quitting the industry.

“If we keep going down the path that we’re going we’re not going to hold or entice any young farmers in this industry,” he said.

In its submission, the peak industry body said about 20 per cent of large growers were losing more than 30 per cent of produce through self-rejection practices.

“One in five farmers report that rejected produce is given to supermarkets for free, and one in four stated that supermarkets expect imperfect produce for free,” it said.

“Therefore, rejection of produce could also be a method for retailers to manipulate growers into providing low-cost or free produce, while still setting high retail prices.”   :(

According to the industry group, vegetable growers are entering into “non-binding” agreements with supermarkets where retailers set a forecast weekly volume of stock, with no obligation to accept the full amount.

A significant percentage of growers have reported that supermarkets were rejecting a considerable portion of their supply, with sometimes as little as 50 per cent of produce appearing on supermarket shelves.

This has forced farmers to choose between ploughing their surplus crops back into the soil or selling it on the wholesale market for a cheaper price.

Fresh produce farmers say supermarkets are manipulating them into accepting lower prices for their goods.   :(


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“Retailers, who actively monitor prices in the wholesale market and buy from market agents, then advise the grower that the wholesale price is low, and therefore put pressure on the grower to accept lower prices,” the AUSVEG submission said.

Matilda   :(

The standard of fruit in Australia is poor by any standards. Bananas are harvested green and then subjected to gas by the retailers to artificially ripen them. Consequently they have no real taste.

Pineapples are also harvested green and are pale, with a tart flavour. Compare a can of Golden Circle pineapple to a can of Dole pineapple to see the colour and taste difference.

Stone fruit is a disaster. Apricots, peaches, plums, nectarines are all firm, dry and tasteless.
I suspect there is a whole generation of people who think this is how stone fruit is meant to be.

Grapes are usually without much flavour, though every now and then there comes a decent batch.

Mangos are hit and miss - mostly miss. Often dry and flavourless when opened.

All of this means that growers are producing sub standard product and expecting more for it. No doubt the supermarkets are always making sure their profit is protected, hence the difference between what the grower/farmer receivers and what the customer pays. That is just business.


Lozza   :(

Successive governments have allowed the big end of town to gobble up smaller fringe plays and now competition is dead. Its happening everywhere,  insurance,  airlines,  etc. I only just read an article were ANZ were knocked back on the take over of SunCorp by the ACCC because it was deemed anti competitive yet on appeal this was overturned. What hope do we have!!!


Frances   :(

I've seen fruit and veg in my local supermarket being sold for top dollar that even a pig would turn its nose up at. Certainly not top grade quality. Obviously the rejected food given free to the supermarkets by the farmers is being sold for profit. Woolworths and Coles are making fools out of us and once our farmers are gone there goes our fresh produce.


Matilda   :(

Our "fresh produce" is mostly sub standard anyway.


Tim   :(

Well they make money by paying the lowest possible amount and charging us the highest possible amount….not rocket science.

No-one is forcing the farmers to sell to them.

Got a pineapple growing in the garden - I'll let yez know how it turns out. at the moment it's about 150mm high... and obviously young... growing fast...

My passion fruit are much sought after by the ladies in the art group... gives their tongues a workout...

Never forget the peach tree... went away for a coupla days and came back to zero fruit... not even a seed on the ground.... The Schoolkid Birds got 'em ...

Do you net the peach tree?

whiteknight wrote on Mar 18^th, 2024 at 5:02pm:

...The standard of fruit in Australia is poor by any standards. Bananas are harvested green and then subjected to gas by the retailers to artificially ripen them. Consequently they have no real taste. Pineapples are also harvested green and are pale, with a tart flavour. Compare a can of Golden Circle pineapple to a can of Dole pineapple to see the colour and taste difference. Stone fruit is a disaster. Apricots, peaches, plums, nectarines are all firm, dry and tasteless. I suspect there is a whole generation of people who think this is how stone fruit is meant to be. Grapes are usually without much flavour, though every now and then there comes a decent batch. Mangos are hit and miss - mostly miss. Often dry and flavourless when opened.

Agree totally with all this... sadly.

I don't recognise any of Woolworths' fruit as the same thing I was
eating as a kid in the 1950s.  "The Fresh Food People"?  Don't make
me bloody laugh!

When I'm in Sale or the Valley, I buy Lady Finger bananas from the
oriental grocers there.  Totally different fruit compared to Woolie's crap.

And Woolie's 500g peanuts in the shell?  Last few months imported
from China.  Haven't they heard of Kingaroy?

    >:(    >:(    >:(

freediver wrote on Mar 19^th, 2024 at 9:29am:

Do you net the peach tree?

I net my loquats, using those green net bags that onions come in.

The fruit's in clusters, so it takes a bit of time and effort but it's
worth it to keep the local cockatiels away from destroying them.

I grow about 30 different types of fruit at home. I usually have something on all year round, rarely too much. Most of it is far better than supermarket fruit. The traditional European style fruit always seems to be a disaster though. Can't keep the various pests off them, and always a pain to manage. Like peaches for example. Citrus is an exception. I don't spray any poison. There is an amazing variety just in the humble banana, plus plenty of exotics that you have probably never heard of, but are well suited to local conditions. Next year I might net my mangoes. Had my first really big crop this year, but shared a lot with the bats.