Australian Growers’ Post

(AUSTRALIA 19.01.24) Supermarkets to face further probe over pricing. Queensland plans a parliamentary inquiry into major supermarkets' pricing practices, focusing on the gap between grocery costs and farmers' earnings. ----- [AG: Australia is witnessing a concerning trend in addressing the critical issue of the pricing gap between farmers' earnings and consumer costs. Rather than adopting a cohesive, nationwide strategy, each Australian state and territory seems to be embarking on its own individual inquiry. While the intent to scrutinize our fresh produce supplychain stakeholders is well-placed, the fragmented approach raises serious questions about efficiency, resource allocation, and the overall effectiveness of these inquiries. At the heart of the matter is the undeniable fact that the challenges faced by our farmers and the impact on consumers are issues of national significance. It's perplexing to see each state and territory initiating separate inquiries, duplicating efforts and consuming valuable time and resources that could be better utilized in implementing meaningful changes. The grocery industry operates on a national scale, with major supermarket chains extending their influence across state borders. Thus, addressing the pricing practices of these influential players requires a unified, nationwide response. A state-specific approach risks creating a disjointed regulatory landscape, making it challenging to enforce and maintain consistent standards. Beyond the practicalities, there's a stark economic reality that cannot be ignored. The cost of conducting individual state-level inquiries is a needless drain on both time and money. These resources could be better spent on national initiatives that bring about impactful change on a broader scale. It is crucial to emphasize that the interconnected nature of our national economy necessitates a coordinated effort to ensure a unified response to the concerns raised by farmers and consumers. A piecemeal approach not only hinders efficiency but also undermines the potential for a comprehensive solution to the challenges at hand. In the interest of national efficiency and effectiveness, it is time for a reevaluation of the current state-specific inquiry strategy. A nationwide perspective is not just desirable; it is essential to address the national implications of grocery pricing practices. We need to prioritize the national interest over regional considerations to ensure that initiatives aimed at rectifying industry disparities are not only impactful but sustainable in the long term. Australia deserves a streamlined and cohesive approach to tackle these crucial issues. It's time for our nation to stand united in addressing challenges that impact us all.] ----- https://lnkd.in/gQNhvcbx

(AUSTRALIA 06.03.24) Fixing Australia’s supermarkets: how to drive competition without wielding a hammer. Albanese government avoids breaking up top Australian supermarkets, seeks regulatory competition changes. Challenges include supplier access, land availability. NZ scandal shows supply limits favor big players. Kaufland's exit underlines hurdles for new entrants due to land constraints. Government may aid non-duopoly supermarkets to access sites. Senate inquiry and regulator scrutinize pricing, market distortion. Proactive reforms urged for fair markets. ----- [AG: In Australia's ever-evolving food industry, fostering competition and supporting local growers are critical to ensuring a vibrant and sustainable marketplace. While the idea of wielding a hammer to break up dominant players may seem tempting, there are gentler yet effective approaches to drive competition and promote fairness in our industry. One innovative solution is to invite major overseas retailers to settle in Australia with full government support. By welcoming renowned retailers, we can inject new competition into the market and provide consumers with greater choice and affordability. Moreover, these retailers can bring in expertise and resources to enhance efficiency and innovation in our industry. Another avenue is to invest in Australian farmers and growers by supporting the development of Cash and Carry establishments near domestic fresh produce wholesale markets or urban regions. These farmer-owned establishments can streamline the supply chain, allowing farmers to sell directly to retailers and consumers, bypassing intermediaries and reducing costs. This direct-to-market approach not only benefits farmers by improving their profit margins but also ensures fresher produce for consumers. Furthermore, promoting the establishment of regional cooperatives owned and managed by local farmers and growers can strengthen their collective bargaining power and enable them to negotiate fair prices with major retailers. By eliminating unnecessary intermediaries and shortening the supply chain, these cooperatives can ensure that farmers receive a greater share of the profits while providing consumers with high-quality, locally sourced products. Ultimately, the key to driving competition without wielding a hammer lies in fostering collaboration, innovation and support for local producers. By embracing these solutions and empowering farmers and growers, we can create a more resilient and equitable food industry that benefits both producers and consumers alike. Let's work together to build a leaner and fairer food supply chain from paddock to plate.] ----- https://lnkd.in/gr_i3X49

(AUSTRALIA 01.06.24) Supermarket inquiry slammed as 'missed opportunity'. The opposition criticized a recent supermarket pricing inquiry in Queensland as a "missed opportunity" to address price discrepancies. Coles and Woolworths continue to profit while consumers face rising prices. Recommendations were made, but the opposition feels they lack real action. Premier Steven Miles defended the inquiry, emphasizing fairness for farmers. The government is considering the recommendations, which highlighted supermarket dominance and rising prices, especially in regions. Producers worry about supermarkets suppressing prices, while major supermarkets blame supplier costs for price increases. ----- [AG: Australia, known for its diverse landscapes and vibrant culture, presents a fragmented front when it comes to addressing national issues. Recently, a supermarket pricing inquiry in Queensland has highlighted not just a regional concern, but a national dilemma. The inquiry, tasked with investigating price discrepancies in Queensland's supply chain, has been criticized as a "missed opportunity" by the opposition. However, the problem runs deeper than just one state's handling of the issue. It reflects a larger issue of disunity and disjointed efforts across our country. Australia, despite being one nation, often operates as if its states and territories are independent countries, each flying its own flag and pursuing its own agenda. This lack of cohesion becomes painfully evident when faced with national challenges such as the pricing practices of major supermarkets. Our fresh produce retailers, dominated by a few major players, prioritize maximum profits at the expense of fair compensation for farmers. The ongoing pressure placed on suppliers to sell their produce at unsustainable prices has led to farmers walking away from the industry in droves. In this landscape, the idea of "Advance Australia Fair" seems like a distant dream. Working together as a nation to tackle the cost of living, combat price gouging by retailers and support our farmers appears to be an insurmountable task. Instead, we see states and territories operating in silos, each with its own approach and priorities. It's time for Australia to rise above these divisions and come together as one unified nation. Our farmers deserve fair compensation for their hard work and consumers deserve access to affordable, quality produce. Only by working collaboratively, we can ensure a brighter future for all Australians. We must put aside our differences and strive for a more equitable and sustainable food system for generations to come.] ----- https://lnkd.in/gjJyrKmd

(AUSTRALIA 21.02.24) There are multiple inquiries running on the climbing price of groceries. Here's what they are examining. Various inquiries are scrutinizing the rising grocery prices, especially the actions of major supermarkets like Coles and Woolworths regarding their dealings with suppliers and customers. Stakeholders such as supermarket chains, producers, and politicians are involved. The inquiries cover investigations into price gouging and reviews of competition and industry codes of conduct. However, any actual changes resulting from these inquiries may take time to materialize due to legislative processes and implementation delays, potentially delaying tangible benefits for consumers. ----- [AG: Our industry is grappling with escalating grocery prices, largely due to the actions of supermarket giants such as Woolworths and Coles. However, the national response to this challenge lacks unity, with various states and political parties conducting separate inquiries. This disjointed approach wastes taxpayers' money and hampers effective solutions to the issue. It's a frustrating reality that highlights a fundamental flaw in our system: the lack of cohesion and collaboration in addressing crucial issues that impact our Australian farmers, growers and consumers. While Woolworths and Coles seem to be the focus of scrutiny, it's essential to recognize that they are not the sole culprits. Other major retailers such as Aldi and Metcash, along with independent supermarkets and fresh produce retailers, play significant roles in shaping the market dynamics. Furthermore, we cannot overlook the post-farm gate operators, including wholesalers, traders, merchants, aggregators and exporters operating in our central markets. These stakeholders are also responsible for ensuring fair and sustainable prices for Australian fresh produce growers. Yet, they often operate with impunity on the sidelines, escaping the spotlight of investigation and accountability. The result of this fragmented approach is a lack of meaningful progress and tangible outcomes for the betterment of our industry. Instead of channeling our collective efforts into a unified strategy, we are wasting valuable resources on redundant inquiries that yield overlapping results and minimal impact. It's time for Australia to come together as one nation and tackle these challenges collaboratively. We need a comprehensive approach that encompasses all stakeholders in the grocery supply chain, from retailers to post-farm gate operators. By working together, we can develop solutions that ensure fair prices for growers, support local producers and deliver affordable groceries to consumers. It's time to prioritize unity, collaboration, and the collective interests of our farmers, growers, and consumers above all else.] ----- https://lnkd.in/e9J7UaYT

(AUSTRALIA 10.01.24) Government threatens to pull 'all levers' to ensure supermarkets pass on cost savings, as Craig Emerson picks up grocery code review. ----- [AG: The Australian government's recent decision to task former Labor minister Craig Emerson with reviewing supermarket conduct has sparked a broader discourse on the perceived fairness of profit distribution within the country's food supply chain. The focal point of this debate is the potential impact on farmers and growers who are already grappling with the challenges of unsustainable and non-profitable prices. As supermarkets, particularly Coles and Woolworths, face allegations of price gouging and record substantial profits, the government has underscored its commitment to using "all options available" to bring down grocery prices and alleviate cost-of-living pressures for consumers. However, this approach raises questions about the consequences for those at the primary production level. Agriculture Minister Murray Watt has expressed concerns about farmers receiving inadequate prices, emphasizing the need for supermarkets to pass on cost reductions to consumers. The tension between ensuring fair prices for farmers and achieving lower costs for consumers forms the crux of the issue. The government's response to these concerns includes a comprehensive review of the Food and Grocery Code of Conduct. The voluntary code, currently adopted by major players like ALDI, Coles, Woolworths, and wholesaler Metcash, is under scrutiny to determine its effectiveness in fostering positive relationships between supermarkets, distributors, and suppliers, including farmers. We commend National Farmers' Federation president David Jochinke for endorsing the mandatory implementation of the code and calling for a comprehensive inquiry into the entire supply chain. He expresses apprehensions about entities outside supermarkets that might be gaining undue advantages, thereby playing a role in the escalation of food prices. The central theme of ongoing discussions revolves around the need for transparency in the food supply chain. Farmers and stakeholders are advocating for a clearer understanding of the entities profiting and playing a role in the increasing food prices. The review goes beyond scrutinizing supermarket transactions, aiming to comprehend the dynamics of the entire supply chain. In conclusion, as the government's grocery code review unfolds, it becomes evident that the quest for fairness in Australia's food supply chain is multifaceted. Balancing the interests of farmers, supermarkets and consumers requires a delicate approach that ensures transparency, fair practices, and equitable outcomes for all stakeholders. The complexity of the issue necessitates a comprehensive examination to establish a sustainable and just food industry in Australia.] ----- https://lnkd.in/gQY_UjqD

Australain supermarkets are in the news again due to sourcing overseas produce for their private label ranges. A few months ago SPC reported it was cutting back purchasing local fruit for canning as Woolworths had allocated part of its supply for private label canned fruit purchases overseas. Now a report from the ABC advises Coles is to purchase a percentage of its frozen pea requirements from overseas sources. Why cant our producers effectively compete with overseas producers? What is inflating our costs of production and competitive posture? Do supermarkets consider collaborative ways to improve local growers competitiveness ? And should they if it risks shareholder returns? Would shoppers pay more for Australian grown? #Supermarkets #PrivateLabelpractices #Australianproducers #Competitivedisadvantage #Futureoutlook>>

(AUSTRALIA 10.07.24) This alternative to supermarkets can help you save on groceries, but most people don't know it exists [AG: Rethinking Australia's Fresh Produce Supply Chain - Beyond Co-ops to Producer-Owned Fulfillment Centers] Families are forming shopping co-ops to save on groceries, with some saving up to two-thirds on fruit and vegetable bills. ----- [AG: Recent reports highlight how small shopping co-ops are helping Australian families save on groceries, with some reporting savings of up to two-thirds on weekly fruit and vegetable bills. While this grassroots approach is commendable, it's not a scalable solution for the majority of Australian consumers facing rising living costs. Instead, we should look towards more comprehensive and accessible alternatives that can benefit both consumers and producers. One such solution could be Australian fresh produce and food growers collaboratively establishing fulfillment centers near major cities. These producer-owned fulfillment centers would effectively shorten the supply chain, eliminating unnecessary middlemen and reducing costs. By operating on a cash & carry model, similar to popular systems in Europe, these centers could provide direct access to the public, retailers, restaurants and other food service businesses. The benefits of this model are manifold: • Direct producer-to-consumer connection, ensuring fairer prices for both parties • Reduced food miles, leading to fresher produce and lower environmental impact • Greater control for farmers over their produce and pricing • Potential for increased profits for producers by cutting out intermediaries • Improved food security through a more resilient, localized supply chain Moreover, these fulfillment centers could serve as export hubs, allowing Australian producers to more easily reach overseas markets. This would provide an additional revenue stream and help showcase Australia's high-quality produce globally. Crucially, these centers would be owned and operated by Australian growers and farmers, with each producer holding a stake in the enterprise. This ensures that the benefits flow directly back to those who form the backbone of our food system. While co-ops offer a stopgap solution for some, a network of producer-owned fulfillment centers could revolutionize Australia's fresh produce industry. It would provide a more sustainable, equitable, and accessible alternative to the current supermarket-dominated system, benefiting producers and consumers alike. As we grapple with ongoing cost-of-living pressures and the need for a more resilient food system, it's time to think bigger. Let's move beyond small-scale solutions and work towards a transformative model that puts our farmers and consumers first.] ----- https://lnkd.in/g8gxCb4T

How Can Grocery Stores and Farmers Markets Continue To Grow Together? Grocery supermarkets and farmers markets have had a unique relationship, and while most consumers regularly shop at a grocery retailer, there are many benefits to shopping at local farmers markets. As reported by The Progressive Grocer, “Grocery stores remain the top retail destination for fresh produce purchases, according to the ‘2023 Power of Produce‘ report from FMI – The Food Industry Association. According to that report, supermarkets get 72% of produce purchases, followed by mass/supercenter stores at 50%, club stores at 34%, hard discounters at 30% and dollar stores and natural/organic stores, each with 17%.” However, large grocery chains often source their produce from all over the map. It’s hard to know exactly where your food comes from or how fresh it is. Read the full article here: https://lnkd.in/eD6KjjmU Jeff Sward "Sounds like local farmers markets were the original DTC model. Efficient and a win-win for seller and buyer alike." Lucille DeHart "Shop in shops are an innovative answer to create and leverage synergy. Many farmers markets are seasonal in many regions of the country but the demand is really year-round. Creating farmers market zones within the physical grocery store could be a nice way to bring in new customers, gain sales and differentiate from other competitors."

The article addresses growing concerns in Australia about high grocery prices and the potential for price-gouging by major supermarket chains such as Woolworths and Coles. Woolworths CEO Brad Banducci has received numerous complaints, reflecting public frustration over the cost of essentials. Investigations, including one by the Australian Competition and Consumer Commission (ACCC), are underway to determine if these claims of price-gouging are valid. Former ACCC chair Allan Fels notes a rise in profit margins for these supermarkets, which might indicate price-gouging. Despite this, the article acknowledges that some prices have decreased, and it's understood that supermarkets are businesses, not charities, making pricing a complex issue influenced by many factors. The article also highlights the impact of market competition, with Professor Fels discussing the potential entry of Aldi-like supermarkets into Australia, which could lead to lower prices due to more competition. The government is actively discussing supermarket pricing and considering implementing recommendations from these investigations as part of broader reforms to the Food and Grocery Code of Conduct. In this context, empowering consumers to grow their own food emerges as a significant step towards self-reliance and sustainability. Initiatives like community Landcare can play a pivotal role in this transformation, and there are many examples around NSW and the country. By educating and providing resources for home gardening and small-scale farming, these initiatives can reduce dependence on large supermarket chains, at least for some food consumables. This shift not only potentially alleviates the impact of high grocery prices but also promotes healthier, more environmentally friendly food sources. Such community-driven efforts in growing and sharing food can lead to a more resilient and financially sustainable food system, countering the challenges posed by the current supermarket-dominated model. See article here: https://ab.co/429fQx4

The article addresses growing concerns in Australia about high grocery prices and the potential for price-gouging by major supermarket chains such as Woolworths and Coles. Woolworths CEO Brad Banducci has received numerous complaints, reflecting public frustration over the cost of essentials. Investigations, including one by the Australian Competition and Consumer Commission (ACCC), are underway to determine if these claims of price-gouging are valid. Former ACCC chair Allan Fels notes a rise in profit margins for these supermarkets, which might indicate price-gouging. Despite this, the article acknowledges that some prices have decreased, and it's understood that supermarkets are businesses, not charities, making pricing a complex issue influenced by many factors. The article also highlights the impact of market competition, with Professor Fels discussing the potential entry of Aldi-like supermarkets into Australia, which could lead to lower prices due to more competition. The government is actively discussing supermarket pricing and considering implementing recommendations from these investigations as part of broader reforms to the Food and Grocery Code of Conduct. In this context, empowering consumers to grow their own food emerges as a significant step towards self-reliance and sustainability. Initiatives like community Landcare can play a pivotal role in this transformation, and there are many examples around NSW and the country. By educating and providing resources for home gardening and small-scale farming, these initiatives can reduce dependence on large supermarket chains, at least for some food consumables. This shift not only potentially alleviates the impact of high grocery prices but also promotes healthier, more environmentally friendly food sources. Such community-driven efforts in growing and sharing food can lead to a more resilient and financially sustainable food system, countering the challenges posed by the current supermarket-dominated model. See article here: https://ab.co/429fQx4