Farmers giving evidence at an inquiry into supermarket practices are expected to do so behind closed doors out of fear of retribution from the retail giants.
It comes as the Queensland government establishes the Select Committee into Supermarket Pricing probe into the big four supermarkets, with the first hearing to be held in Bundaberg today.
The region is one of the nation’s food bowls, producing more than $1 billion worth of agricultural products each year including tomatoes, zucchini, macadamias, sugarcane and sweet potatoes.
Member for Bundaberg Tom Smith, who is chair of the inquiry, said part of the hearing would be closed for growers who were afraid to speak publicly against the supermarkets.
“They’re worried about how the big supermarkets are going to treat them,” he said.
“What Coles and Woolworths are doing to some of our local growers it’s akin to mafia tactics.”
He said he had heard stories from growers in Bundaberg who were down 30 per cent on profits because the big supermarkets were undervaluing their product.
“It’s not just about the big industries, it’s about everyday farmers, it’s about mums and dads and pensioners putting their voice forward about the pressures that they’re feeling by the big supermarkets,” Mr Smith said.
“We also want to make sure that our farmers are getting the fair go because we know that they’re not.”
Price gouging in spotlight
Cross Family Farms owner Trevor Cross said he hoped the inquiry would spread some awareness of discrepancies between what farmers were paid at the farmgate and the price on supermarket shelves.
“I just hope when they look into it, that they realise the farmer hasn’t been getting a fair portion of what the consumer is actually paying,” he said.
“At the end of the day, the consumers are thinking that the farmer is making the money. The farmer’s not getting anywhere near enough to even survive.”
He said the inquiry would not lead to cheaper fruit and vegetables for consumers because the cost of production had increased.
But he hoped it would lead to a fairer distribution of profits and suggested a cap on the mark-up the supermarkets could make on groceries to prevent price gouging.
“If there was a legislation put into place that the supermarket couldn’t charge any more than 45 per cent above what they purchased from the farmer, or just a percentage that’s set there so we can all actually get a piece of the pie,” he said.
Retail giants agree to face questioning
The inquiry has received more than 40 submissions including from the major supermarket chains of Woolworths, Coles, and Aldi.
Hearings are also scheduled in Cairns and Brisbane in the coming weeks.
A Woolworths spokesperson said a representative would address a public hearing in Brisbane.
Bundaberg Fruit and Vegetable Growers chief executive Bree Watson said the group would present evidence to the inquiry about the mark-ups and profit margins of the supermarkets.
“You know some things like ginger and spinach for example, there are things that you know the mark-ups are absolutely massive on those particular products,” she said.
In her submission, Ms Watson said farmers were receiving an average market price of $1.47 per kilogram for zucchini in September last year which was being sold at a retail price of $5.90 per kilogram.
She said there was scepticism among growers about what power the state government had to regulate the industry and what the impact on them would be.
“We need to make it really clear that if there’s going to be any changes that they are sustainable and that it’s not the growers that will be paying for that,” she said.
Mr Smith said the probe complemented other reviews happening in Australia, including the Senate Inquiry into supermarket prices, but the focus was on the state’s responses and potential legislation.
“As the committee begins its public hearings, it will form recommendations that will ultimately be put to the government,
“From these recommendations can come legislative and regulatory changes that the government can put to the Parliament in order to best provide a fair industry for farmers and everyday consumers.”
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