Business

Australian Family Farms Face Uncertain Future Due to Supermarket Practices

Family farms in Australia are facing an uncertain future as orchard veterans express concerns over the impact of supermarket practices on their industry. The Senate inquiry into supermarkets has become a platform for older farmers to voice their apprehensions, with fruit grower Guy Gaeta warning that family farms could disappear within the next decade.

Gaeta, an orchard owner from Orange, New South Wales, with over 30 years of experience, accused major supermarkets of implementing ‘rejection regimes’ to refuse produce without recourse and driving down prices paid to suppliers while increasing prices for shoppers. He advocated for transparency in pricing to show the purchase price and the sale price, emphasizing the need for consumers to understand the challenges faced by farmers.

The impact of supermarket pricing and market power on suppliers, particularly in the horticultural sector, has come under scrutiny in the Senate inquiry. Concerns have been raised about the lack of price rises for some fruit and vegetable growers from major supermarkets over the past 15 years, further exacerbating the challenges faced by family farms.

The dominance of Coles and Woolworths, controlling two-thirds of the market, has raised concerns about the reasonableness of supermarket prices and profits. Policymakers are now tasked with addressing these issues and considering potential reforms to support the sustainability of family farms in Australia.

The Senate inquiry serves as a crucial platform for stakeholders to address the pressing issues affecting the agricultural industry, with the future of family farms hanging in the balance.

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