By Aaron Cordy
THE Select Committee on Supermarket Prices final report was released Tuesday, May 7, with many sectors welcoming the recommendations handed down by the committee.
The perishable nature of fresh produce means that the fruit and vegetable industry is often subjected to contract terms and pricing pressures from supermarkets like no other industry, which has allowed these corporate giants to bleed working farmers for many years.
The issue that many in the area have lived for years became widely known last November when Ross Marsolino of Natural Earth Produce in Toolamba decided to cut his losses one week into zucchini season and mulch his crops rather than accept the prices offered by the supermarkets.
The committee has recommended the creation of divestiture powers specific to the supermarket sector, where a supermarket has been found to have misused its market power or engaged in unconscionable conduct.
Federal Member for Nicholls, Sam Birrell MP has welcomed the findings of the Senate Select Committee on supermarket prices.
“Divestiture powers would act as a significant deterrent, with corporations risking the forced sale of assets if they abuse their market power,” Mr Birrell said.
“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.”
“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.”
“The Albanese government needs to respond to the recommendations, and step in to create a more level playing field,” said Mr Birrell.
