On December 6, 2023, the Senate established the Committee on Supermarket Pricing to investigate price gouging and setting practices in Australia’s supermarkets.
On May 7, the Senate found that changes are necessary to safeguard consumers at the checkout and gave 14 recommendations to be considered by the federal government.
Federal Member for Nicholls Sam Birrell welcomed the recent findings of the Senate Selection Committee on supermarket prices and has called on the government to respond to the recommendations.
In response to the committee’s recommendation to establish a Commission on Prices and Competition which would make the Food and Grocery, Dairy, and the Horticulture Code of Conducts compulsory, Mr Birrell said the provisions would be “a welcome addition.”
“The recommendation to create provisions specifically for the trading of fresh produce, reflecting the perishability of the product and the particular vulnerability of suppliers would be a welcome addition,” Mr Birrell said.
The Senate also heard from farmers and farmer groups caught in the middle of unfair pricing conflicts, bidding for a fairer deal.
“Many of the suppliers, including farmers, that appeared before the committee did so anonymously for fear of retribution for trying to negotiate a level playing field,” Mr Birrell said.
“The inquiry found the fruit and vegetable industry in particular was vulnerable to unenforceable contract terms and pricing pressures because most of their produce can’t be exported, and is perishable, meaning they had a limited timeframe in which to negotiate with supermarkets.”
“While the price at the supermarket checkout was a significant part of the inquiry, many consumers would have been shocked that the higher prices they are paying are not benefiting producers, some told the inquiry they had not had a price increase in 15 years.”
Mr Birrell said that while competition in the sector drives market efficiency, the future of fruit and vegetable sustainability is “paramount.”
Mr Birrell has called on the government to respond to the recommendations “to create a more level playing field.”
