Local farmers, businesses and families are set to receive better deals from supermarkets following the Albanese Federal Government strengthening the Food and Grocery Code of Conduct.
As part of the Labor Government’s broader initiative to combat cost-of-living pressures, the changes ensure supermarkets engage in competitive practices, leading to fairer prices for suppliers and consumers.
Local State Member for Light, Tony Piccolo MP, welcomes the decision to level the playing field for smaller businesses dealing with giant companies.
“Our farmers work tirelessly to provide us with quality produce, and it’s only fair they, along with other suppliers, have the assurance their interests are protected and hard work is rewarded,” said Mr Piccolo.
“This also opens the door for our local businesses to come to the table and get their products on supermarket shelves, increasing the options available for all families.”
The decision comes after former Labor minister, Dr Craig Emerson, undertook a review of the Code of Conduct to address the imbalance of bargaining power between supermarkets and their suppliers.
All the recommendations have been adopted, including making the voluntary Code mandatory to all supermarkets with an annual revenue over $5 billion, introducing penalties for breaches, encouraging dispute‑resolution arrangements and creating an anonymous supplier and whistle‑blower complaints mechanism.
“Suppliers will be able to raise concerns and exercise their rights under the Code without the fear of retribution from supermarkets,” said Mr Piccolo.
“These rules, along with the Australian Competition and Consumer Commission inquiry into supermarket prices, quarterly price monitoring reports and the biggest advancement of merger reform legislation in almost 50 years, will reduce the likelihood of unfair practices that can lead to inflated prices.”
AUSVEG CEO Michael Coote said it was hoped implementation of the report’s recommendations would lead to improved relations between retailers and fresh produce suppliers, and help provide growers with greater certainty at a time when the industry is experiencing a cost-of-production crisis.
“Retailer relations with suppliers are complex, and we congratulate Dr Emerson on listening to concerns raised by industry, and by extension the Government for committing to implement the recommendations,” said Mr Coote.
“If implemented effectively, many of these recommendations have the potential to improve business relationships between growers and retailers, and may help ensure growers receive fair and sustainable prices for their produce.
“While the intent of the review to strengthen the Code and address the power imbalance that disadvantages suppliers of fresh produce to big retailers is to be applauded, we note there is some way to go before these recommendations are operational.”
For more information on the changes to the Food and Grocery Code of Conduct, please visit https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/strengthening-food-and-grocery-code-get-fair-go-families