A farming industry source has said that Western Plains producers are afraid to speak out on the conduct of business supermarkets because they are worried it will lead to a loss of contract in the tightly controlled market. 

The source, who wanted to remain anonymous, said that local farmers are in a position where they are unable to speak out for fear of market retribution of one of the big three – Bunnings, Coles and Woolworths. 

Currently in Canberra, the Select Committee on Supermarket Prices is undertaking hearings for its "inquiry into and report on the price setting practices and market power of major supermarkets". 

 The inquiry is looking at why the supermarkets are both raising prices and profits at a time when many Australians are struggling with cost of living. 

The National Farmers Federation released a statement on April 17 saying that "Despite two days of intense questioning in Canberra, including a grilling for each of Bunnings, Coles and Woolworths, the supermarkets and big box stores still appear to be in denial about their behaviour and the loss of public trust and support". 

NFF Horticulture Council Chair Jolyon Burnett said the pressure needed to be kept up if the right outcomes are to be secured for the Australian public and farming sector. 

“The Senate Select Committee inquiry into supermarket price gouging has been a revealing and at times alarming window into supermarket behaviour. But the Australian public is only just getting an understanding of the true nature of price gouging and the poor treatment of fresh produce and other suppliers,” said Mr Burnett. 

Inquiry: Shepparton News. 

At the inquiry this week outgoing Woolworths chief executive Brad Banducci was warned by Inquiry Chair Nick McKinn he could be held in contempt of the Senate and face potential jail time after after refusing answer questions at the inquiry.  

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The Woolworths Group has not responded to the exchange, but at the inquiry's start on Tuesday it released a statement saying "While at Woolworths, we are now seeing falling rates of grocery inflation, nevertheless, we understand that many of our customers are under immense cost of living pressure. This is primarily due to rising mortgage repayments, rent and transport costs, which have all gone up in double digits."  

Brad Banducci. Image: Woolworths. 

Ms Burnett said “We expect more to be unveiled through the ongoing ACCC inquiry into supermarkets that will only conclude next year, and we look forward to a final report in a few months from Craig Emerson on what changes might be made to the Food and Grocery Code of Conduct to help create a fairer and more transparent trading environment. 

“Today while CEOs are fielding questions about their poor practices, Australian avocado growers are getting offered an average of only 78 cents per piece while they retail in store at $1.50. 

“What then infuriates growers, who are also supermarket customers, is witnessing prices rise far more steeply at retail than they are at farmgate.”