Australian supermarkets are facing scrutiny over concerns of price gouging and code breaching, leaving farmers to struggle despite these issues. Jo Sheppard, the CEO of Queensland Farmers Federation, has raised concerns about the increased production cost of up to 65 percent over the last three to four years. She cited significant increases in costs of imports such as labor, fertilizer, fuel, energy, and transport. She also noted that some farmers have not seen profit increases similar to supermarkets for up to 10 years.
Queensland Premier Steven Miles has expressed frustration at the discrepancy between what retailers pay farmers and what customers pay at checkout. He emphasized the importance of meeting with supermarket CEOs to discuss their efforts to address rising prices and their future intentions. The premier also believes that the voluntary code of practice, which ensures retailers act in good faith with suppliers and provides farmers with the right to an arbiter, should be mandatory.
CEO of Queensland Food and Vegetable Growers Rachel Chambers brought attention to the issue of arbiters being paid by supermarkets, labeling them as independent. The federal government has announced a review of the Food and Grocery Code of Conduct, prompting the input of Mr. Miles and undertaking by Craig Emerson, an Australian economist and former parliament member.
Supermarket powerhouses have faced suspicion of price gouging and illegal retail practices, citing strategies to cut costs as a counterargument to these claims. Mr. Miles argued for sufficient penalties to discourage supermarkets from price gouging and expressed hope for the review to bring forth information on price gouging and upholding the code of practice.