The Nationals have expressed concern about the effect of the duopoly held by Coles and Woolworths on Australia’s food security. Nationals Leader David Littleproud urged Australian policymakers to eliminate this duopoly following a new investigative documentary by the Australian Broadcasting Corporation about the business practices of the two supermarket chains and the impact on consumers and farmers. Littleproud said the documentary confirmed what the public had known about the supermarket duo and called for action to break up the main players in the market and grant the consumer watchdog more power to crack down on unfair practices. This call to action was made amid concerns about agricultural providers exiting the industry due to increased pressure.
The Labor government previously directed the Australian Competition and Consumer Commission to conduct a 12-month investigation into price gouging in the supermarket sector, and the Greens are also leading a parliamentary inquiry into supermarket prices. Littleproud raised concerns about potential food insecurity if farmers were to exit the sector, noting that food security must be a top priority. He also criticized the federal Labor government for failing to act swiftly. Prime Minister Anthony Albanese and Agriculture Minister Murray Watt also spoke out about the impact of the supermarket chains’ practices on farmers.
However, some experts pointed out that it was government policies, not supermarket dominance, that caused inflation. According to Graham Young, the executive director of the Australian Institute for Progress, government economic strategies during and after the COVID-19 pandemic led to the significant rise in inflation. He highlighted factors such as excessive money supply, supply chain disruptions, and other government policies that ultimately contributed to the inflation rate of eight percent. Young also argued that the 2.5 percent profit margin after tax of Coles and Woolworths did not support the narrative that the supermarket chains are to blame for the cost of living crisis. He noted that while the consumer price index increased by 5.4 percent, that of food and non-alcoholic beverages was only 4.8 percent.