ACCC proves growers have a right to be concerned
Woolworths’ recent testimony at the ACCC Supermarket Inquiry hearings have reignited QFVG’s long-standing concerns that supermarkets may be manipulating market conditions at the expense of suppliers.
The supermarket testified it has access to advanced consumer demand data, yet failed to provide accurate volume forecasts to suppliers.
Such an admission reveals a troubling contradiction.
On one hand, supermarkets boast unparalleled predictive capabilities; on the other, they claim an inability to apply these insights effectively enough to support growers to make good business decisions.
This revelation underscores the structural imbalance in supermarket-supplier relationships that perpetuates oversupply, drives unnecessary food waste, and needlessly undermines the future of hardworking farmers nationwide.
In response to the findings, Chair of the NFF Horticulture Council, Jolyon Burnett, has rightfully questioned Woolworths’ motivations.
“This is a significant admission from Woolworths that undercuts their claims of having the interests of their suppliers at heart in their commercial dealings,” said Mr Burnett.
“Providing volume forecasts greater than the amount reasonably expected to be bought not only undermines the financial sustainability of growers but creates avoidable food waste and an oversupply scenario that ultimately serves to push prices down at farm gate…
“Our view is that it's more likely Woolworths hasn't had a commercial incentive to provide more accurate forecasts and that blissful ignorance has been its preferred position.”
Public acknowledgment under oath of these failures although pleasing to hear, is frustrating given the updated Food and Grocery Code of Conduct has fallen well short of industry expectations.
I can assure all growers that nationally, industry has thrown everything at trying to get the code to be workable and effective – unfortunately it seems regardless of how united and powerful our voice has been – it has fallen on well meaning, yet deaf, ears.
The result of not listening to those who live and breathe this code is the potential for a new code which does nothing more than the last – which was nothing.
Language such as “due care” in forecasting is woefully vague and inadequate. Surely Woolworths’ testimony bolsters the evidence that a more prescriptive approach is necessary—one that sets clear standards for forecast accuracy, mandates regular reviews, and enforces penalties for non-compliance.
The Federal Government must step up. Woolworths’ admissions are not isolated; they reflect systemic practices within Australia’s grocery sector. Failure to act now risks not only the sustainability of the fresh produce supply chain but also consumer trust in the fair operation of our markets.
Supermarkets cannot continue to wield unchecked power over their suppliers. Transparency and accountability are essential to restoring balance and ensuring a future where growers and supermarkets coexist in a truly competitive market.
The ball is now in the government’s court to deliver the regulation and oversight this sector desperately needs. It can start with really listening to industry’s suggestions on the draft code which is due to land on Andrew Leigh’s desk this week. Anything less would be a betrayal of Australian farmers and the consumers they serve.
