FARMERS are being urged to share their stories about negotiating with supermarkets, particularly if there was an abuse of power, with the competition watchdog.
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The Australian Competition and Consumer Commission (ACCC) is conducting an inquiry into the power imbalance between farmers, processors and retailers.
The government has mandated the ACCC complete the inquiry within three months, so it can act on its findings quickly, leaving farmers with just a two-week window to get their submissions in by September 18.
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People can make their submissions confidentially, if they fear repercussions for speaking up.
In preparing submissions, the ACCC says people may wish to comment on:
- Relative bargaining power of the suppliers at each level of the domestic supply chain (i.e. farm, processing/manufacturing, retail);
- Concentration of suppliers at each level of the domestic supply chain;
- Nature of the relationships between suppliers at each level of the domestic supply chain;
- Risks faced by suppliers at each level of the supply chain, the sources of these risks and the options for dealing with them;
- Practices and behaviours of buyers of perishable agricultural goods and the effect these have;
- The incentives for growers to invest in farming and supply of these goods, or for processors to invest in manufacturing, product quality and innovation;
- The wholesale prices negotiated, and
- The prices or quantities of goods supplied to consumers.
The ACCC welcomes any options to address issues or concerns raised in submissions.
As part of the inquiry, the ACCC will also examine issues specific to the dairy industry, including the effectiveness of the existing Dairy Code, and the cost of producing milk in different parts of Australia and the extent to which it is taken into account by the other levels of the supply chain.
The ACCC confirmed the inquiry would consider regulating the price of particularly items, such as milk, at retailers.
For more information or to make a submission, visit accc.gov.au/focus-areas/inquiries-ongoing/perishable-agricultural-goods-inquiry.
Jamieson Murphy
Newcastle Herald news director and business reporter. Interested in any and all yarns. Whisper g'day mate to me at jamieson.murphy@austcommunitymedia.com.au
Newcastle Herald news director and business reporter. Interested in any and all yarns. Whisper g'day mate to me at jamieson.murphy@austcommunitymedia.com.au
