Pandoras ‘big box’ opened by ACCC
Last Friday, after a year of intense work, many in our industry received the validation they needed with the release of the ACCC’s final supermarket inquiry report.
If we think back to a year ago, when we were struggling to have growers speak out about these issues, to now having an ACCC report in front of us clearly articulating their concerns, we have come a long way. A big, collective thank you must go out to the growers who were brave enough to come forward and tell their story – you are the reason this has come this far. If you haven’t read the report yet – please do.
The ACCC’s support for measures that provide growers with greater certainty, clarity and transparency are welcome, as too is the call to harmonise and streamline the various auditing and compliance schemes retailers require suppliers to comply with. This is a huge focus in QFVG currently so it timely to see it supported in this way.
QFVG also supports the ACCC’s recommendation to limit retailers' ability to override provisions in the Food and Grocery Code, as well as the recommendations regarding supplier branding rights and the use of retail media services. Regarding rebates, QFVG would have preferred a recommendation to completely abolish rebates rather than just require reporting on them. That said, it’s a step forward, and we will continue working towards this goal.
A commitment of $2.9 million in funding for fresh produce industry associations to deliver targeted ‘negotiation’ education programs was also a welcome announcement. Queensland is one step ahead as last year, with the support of the Queensland Government, we worked with industry to upskill the negotiation expertise of over 200 growers through the Geared-up Growers Pilot Program.
The measures recommended by the ACCC have the potential to provide growers with greater certainty, transparency, and improve their bargaining position. However, details still need to be fleshed out on how these will work in the real world.
As we approach the Federal Election, our primary concern is that this vital report may be overlooked, ignored or shelved as this isn't the first time the ACCC have written such a document. QFVG will continue to work to further its recommendations through bipartisan support for thoughtful, careful and effective implementation. We will also keep a close eye on the side process currently underway with Bunnings who we unsuccessfully lobbied to be included in this report due to their similar dealings with our nursery friends.
The original outcome expected for this report was the finding of gouging in a ‘cost of living crisis’ and its impact to consumers. Instead, unknowingly, a pandoras box of complex issues has been opened. If Australians want fresh, locally grown produce in the future, they too must take an active role in addressing the challenges ahead. Cost of living crisis aside, right now, the fresh produce industry is facing a value crisis that requires collective action.
