Farmers facing increasing cost-of-living pressures are calling for an inquiry into the supermarket sector in New South Wales. According to the NSW Farmers president, Xavier Martin, the price increases for groceries are not benefitting producers, forcing them to cover the bill and resulting in low prices for their produce. Additionally, there has been reported anti-competitive behavior by middlemen in the supply chain, putting farmers at a disadvantage.
Consumers are also grappling with rising food costs while major supermarkets Coles and Woolworths have recorded substantial profits. NSW Farmers has requested the Australian consumer watchdog to conduct an inquiry into the sector.
Although the government has announced a review of the Food and Grocery Code, the NSW Farmers president insists that it is not enough. The review is said to cover only a portion of the grocery supply chain and may not address all relevant issues. The ACCC has been recommended to investigate the sector in order to analyze consumer prices, supplier payments, and supermarket costs. However, the National Farmers’ Federation initially welcomed the government’s review and hopes it will lead to changes within the Food and Grocery Code of Conduct.