Time for a closer look at supermarket pricing
Janelle Saffin MP , Member for Lismore
It is clearly time for an investigation into what’s happening with supermarket prices, and it’s good to see some action at the Federal level on that.
We have all seen the price of the weekly grocery shop going up at the same time as the big supermarket chains are reporting massive profits. (In the 2023 financial year, Woolworths reported a total net profit after tax of $1.72 billion, and Coles’ profit was $1.1 billion.)
I’ve had a lot of local farmers ask me what’s going on. They want to know why the prices they are getting for produce have dropped so much, but supermarket prices haven’t come down.
While supermarket pricing and competition is a Federal Government matter, I am raising it here because it affects all of us and we’d like to know what action is being taken and what we can do.
The Federal Government has announced an inquiry into the Food and Grocery Code of Conduct which is a voluntary code which was set up to improve how supermarkets deal with suppliers.
The review is being led by Dr Craig Emerson, a former Federal Minister for Small Business and Minister for Competition and Consumer Affairs and will look at how effective the code is, whether it should be made mandatory and whether it should include civil penalties.
There is also a Senate Inquiry underway into price gouging which is due to report back in May.
According to the Sydney Morning Herald (13/1/24) Treasurer Jim Chalmers is in talks with the consumer watchdog the ACCC about launching a powerful inquiry into alleged price gouging by supermarkets. This is something that farmers want to see because it would force supermarkets to reveal their farmgate prices and contracts.
I would welcome an ACCC price inquiry as the strongest action because, as the Treasurer says – we want a fair go for families and for farmers.
Janelle checking prices while grocery shopping at Woolworths
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One of my staff did the calculation and found she could save $400 a year by switching to another provider, so it’s worth investigating.
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