FRESH food produce suppliers have been subjected to alarming treatment, according to a peak horticultural body, which said the Senate Select Committee report on supermarket prices submitted this week revealed troubling evidence. 

The National Farmers' Federation (NFF) Horticulture Council said the report detailed the cost of supermarket power and exploitative behaviour being borne by the industry and Australian households. Council chair, Jolyon Burnett, said while the evidence of price gouging at the checkout has not been a surprise, the evidence of widespread appalling treatment of fresh produce suppliers has been shocking. 

"What started as an important investigation into supermarket pricing practices on struggling households has also provided widespread examples and growing appreciation of the impacts of supermarket profiteering on the sustainability of Australian fresh produce and nursery businesses and supply chains," Burnett said.  

"The Select Committee has today reported on troubling testimony from growers, of predatory pricing practices that exploit the perishable nature of fresh produce, the imposition on growers of costs and risks outside their control, and of an almost universal fear of commercial retribution should any objections be raised. 

"Not only are growers getting a raw deal with every trade, they're also left with little profit to reinvest in the productivity of their businesses. 

"Our partners, including transport operators, are also getting squeezed leaving our food supply chain weak and susceptible to disruption."

The Review of the Food and Grocery Code of Conduct led and the ACCC Supermarkets Inquiry 2024-25 reports are yet to come, with the Code of Conduct report due by the end of the financial year, the ACCC interim report due by the end of August and its final report expected next February.  

"We expect the ACCC reporting in particular to paint a far more vivid picture of unscrupulous supermarket practices given the addition powers of the ACCC to compel evidence and testimony," Burnett said. 

The Council welcomed recommendations by the Select Committee to dramatically tighten provisions within the Food and Grocery Code and attach significant penalties for any breaches, but has called for more support for the ACCC.

Burnett said the recommendations will work to start levelling the playing field for growers, but it will all be for nothing if the ACCC isn't appropriately empowered and resourced to act. He added the incentives and drive within supermarkets to deliver greater profits to shareholders at the expense of consumers and growers has to be met by substantial penalties for breaching the Food and Grocery Code and other Competition Law, and the very real prospect of getting caught. 

"So, along with many customers and supermarket suppliers, the Council is calling on the Federal government in its Budget next week to deliver a substantial, ongoing investment in the ACCC to deliver on its new monitoring and compliance expectations," Burnett said.