Forget lockstep – sidestepping was the “special of the day”

Monday night's standout TV program in Australia was undoubtedly the Four Corners special, "Superpower." For those in horticulture who missed it, it's a must-watch. 

Several moments were particularly striking, none more so than the Woolworths CEO abruptly leaving mid-interview. Equally surprising was his assertion that prices on the shelf to consumers and the cost increases from suppliers have been in lockstep. Was he serious? Personally, the comment took my breath away.  

The Coles CEO also had her share of memorable quotes, including her saying in response to the allegation growers have a fear of retribution - that it’s not in line with the culture they have at Coles. A statement which didn’t address the issue. 

Throughout, both CEOs sidestepped critical issues, while growers endeavoured to expose their dirty tactics. Former ACCC boss Rod Sims dismissed the Code of Conduct as a joke, while Senator Nick McKim suggested the acid test for the Prime Minister was his ability to move beyond reviews and take action. Overall, it would have been an eye-opening watch for many. 

Could this be the pivotal moment we've all been anticipating – the catalyst for change we've actively sought? And if so, what steps must we take to tip the scales? 

Last week, we finalised our submission to the Senate Inquiry into supermarket pricing, offering the following recommendations: 

  • Changes to the Australian Food and Grocery Code of Conduct to provide growers with a robust framework including it being made mandatory; significantly strengthened penalties; a guarantee that the process of dispute resolution was timely and not financially burdensome; and that arbiters were fully independent. 

  • Imposing significant penalties for breaches of the Competition and Consumer Act, including divestiture of assets and greater investigative powers for the ACCC. 

  • Civil penalties for staff breaching the Code. 

  • The need for agreements and contracts to be legal documents as is accepted practice in other agricultural sectors.  

  • QFVG opposed the idea of ‘real-time’ price data saying it may provide unintended consequences such as collusion or anti-competitive practices. Instead, we supported the disclosure of periodic information to an impartial entity to act as a ‘watch dog’. 

  • Government funding to support growers to increase their capability and understanding of retail practices and negotiation skills. 

  • Investigating the use of rebates as a way supermarkets are profiting from growers. 

  • Supporting the National Food Donation tax incentive as the current tax system makes redirecting surplus to food relief a cost that growers often cannot carry. 

Additionally, QFVG presented 18 more recommendations for further investigation.

It’s a now or never moment. If you’ve had enough and want to be part of the change, just give us a ring and we will help channel your efforts.


How a grower feels… ‘Forked’.

Previous
Previous

Disaster: The good, the bad and the plain unfair. 

Next
Next

How low can they go?