The federal senate select committee on supermarket prices - one of six ongoing inquiries into supermarket prices - hosted a hearing in Orange on 12 March 2024, where local producers gave evidence from the farmer’s perspective in the food chain. 

Among the witnesses there to give evidence were NSW Farmers representatives, Cattle Australia CEO Dr Chris Parker, and Macquarie River Food and Fibre executive officer Michael Drum. 

Speaking about the increasing costs of production, Mr Drum said he worried for the future of family-owned farming businesses, and their ability to maintain Australia’s food supply. 

“It’s a real conundrum…across the board now we see so much cost of compliance. For the family farm, it’s really difficult to keep up to date with (those costs),” Mr Drum said. 

The ongoing conversation around the controversial biosecurity fee was used as an example, where producers will pay a levy to offset increasing biosecurity costs at Australian borders. 

“It’s being applied to all, that’s what makes it very difficult to the average farmer at Menindee who’s selling two or three thousand lambs…why should he bear the costs of whatever happens after that?”

“Once upon a time, farming was something to aspire to…these days it’s seen to be something that’s all too hard. It’s a real cultural challenge."

Senators at the hearing queried Mr Drum on the growing presence of corporate farming businesses - particularly from overseas - and how far Australia is from resembling the U.S’s corporate agriculture landscape. 

“I think we’re probably at the start of it…I don’t think we’ve seen the full extent of corporations seeing that the Australian landscape is one that’s attractive to operate in,” Mr Drum said. 

“The risk is two-fold, that we lose a valuable part of Australian culture to the farmer, and that families end up being driven out of the sector.”

Mr Drum said that corporations will, however, be able to wear increasing costs of compliance better. 

The Select Committee on Supermarket Prices will deliver a report on the price setting practices and market power of major supermarkets, the effect of market concentration, rising supermarket profits and other matters by 7 May, 2024. 

Similar inquiries into the issue are the Supermarket Inquiry (ACCC), Food and Grocery Code of Conduct Review 2023-24 (Australian Treasury), Select Committee on Cost of Living (Australian Senate), Inquiry into promoting economic dynamism, competition and business formation (Standing Committee on Economics), and the Competition Review (Australian Treasury).

Findings for the Inquiry into price gouging and unfair pricing practices conducted by the Australian Council of Trade Unions were handed down in February.