The Federal Australian Government is gearing up for its annual Food and Grocery Code of Conduct review, which takes a closer look at supermarkets and their business decisions to improve standards of behaviour in the sector.
The review specifically looks at the relationship between grocery retailers and their suppliers – i.e, farmers.
This year, with rising cost of living and numerous fingers pointed at supermarket giants Coles and Woolworths for suspected price gouging, the review is likely to garner far more attention than usual.
The government has therefore appointed former Labor politician and economist Dr Craig Emerson (NYSE:EMR) to lead the 2023-24 review of the Food and Grocery Code of Conduct.
He previously served as Federal Minister for Small Business from 2007-2010, Minister for Competition Policy and Consumer Affairs from 2009-2010, and was Minister for Trade from 2010-2013.
Hitting farmers hard
There have been rising calls in the farming sector – especially in Queensland – for a formal ACCC inquiry into supermarket pricing.
Farmers say they are being paid rock-bottom '1978' prices for their produce, after being forced to dump thousands of kilograms of produce last year due to logistical hurdles.
“We’ve been making clear for many months now that retailers should start dropping their prices to reflect the reduction in prices farmers are getting for their produce,” Minister for Agriculture, Fisheries and Forestry Murray Watt said.
“Farmers deserve a fair price for their hard work and the some of the prices supermarkets are charging just don’t pass the pub test.
“While the government is getting on with taking action on the cost of groceries, the ball is in the court of the big retailers.
“They don’t have to wait until this review is finalised to drop their prices, they can do that right now to help Australian families doing it tough.”
If you’re interesting in seeing which supermarket chains are the most ethical toward their suppliers, you can check out the Grocery Code Review here.