The old adage, ‘He who has the gold makes the rules’, has never been more apparent than the relationship between major retailers and farmers.
The Federal Government has recently opened an inquiry with the Australian Competition and Consumer Commission (ACCC) into the domestic fresh food and dairy supply chain, from the farmgate right through to the retailer, including examining the treatment of farmers in the marketplace.
There are concerns that once farm produce is harvested or processed and sent off to market, producers have little bargaining power and are at the mercy of the powerful supermarkets when it comes to the price they are paid.
Unfortunately, not all interactions between farmers and the major supermarkets are conducted fairly and in good faith and there are bargaining imbalances and other serious issues that need to be looked at.
This inquiry with ACCC is not designed to regulate food prices. Instead, it will identify problems and recommend policy options, including a possible all-encompassing Agricultural Code, if appropriate.
The Government opened this inquiry in response to long held concerns about bargaining imbalances that currently exist and the misuse, and in some cases the abuse, of this power by some sections of the fresh food supply chain.
Importantly, the ACCC has guaranteed that the Inquiry will accept confidential submissions so farmers can provide evidence of harmful practices without the fear of punishment and retribution by the major supermarkets.
The Australian Small Business and Family Enterprise ombudsman, Kate Carnell, has thrown her support behind ACCC chairman, Rod Sims’, tough stance on Unfair Contract Terms following his appearance at the National Press Club.
“In November 2016, Treasury legislation amendment (Small Business and Unfair Contract Terms) Act 2015 took effect, that legislation was reviewed in 2018 and here we are, another two years on and small businesses continue to be adversely impacted by big businesses with legal impunity. It’s clear that change is long overdue,” said Ms Carnell.
The current legislation amendment has been sitting with the Treasurer since March with no action being taken. Farmers have a right to feel their interests are not being considered by the Government.
