Nothing ‘sweet’ about Labor’s lack of supermarket action

Leader of The Nationals David Littleproud said Labor’s lack of action on supermarkets is causing more pain at the checkout and along the supply chain, as smaller producers continue to be ‘done over’.

Mr Littleproud said Labor still hasn’t implemented any significant plans to change the culture of supermarkets, and as a result, small food suppliers are suffering.

It comes as the Australian Competition and Consumer Commission (ACCC) was due to hand down its supermarket inquiry report yesterday (Friday, 28 February) to the Albanese Government.

Mr Littleproud has called for the immediate release of the report.

“Families need to see what’s in the report because Labor’s Food and Grocery Code of Conduct won’t even come into effect until April this year, despite the cost-of-living crisis being now, and suppliers struggling now,” Mr Littleproud said.

“The Coalition has been calling for changes since late 2022. Our plan will give the ACCC powers to audit a supermarket at any time.

“We will also introduce sector-specific divestiture powers – in the hands of the ACCC and the courts, not politicians – as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.

“We will have infringement penalty notices, or on the spot fines, of $2 million, compared with Labor’s measly amount of $198,000, which could be pulled out of a till at any city supermarket and does nothing to change culture.”

Mr Littleproud said in the meantime, producers and suppliers are being undermined.

Honey packers Tori and Chris Rutherford stand to “lose everything” amid product deletions and significant price cut recommendations of their beloved Adleys Honey products, packaged in Moruya on the south coast of New South Wales and produced by family beekeepers across the east coast.

“Our small family business has supplied Coles for more than a decade, but we have just been informed that our 400-gram ‘Nothing But Honey Squeeze’ will be removed from shelves in June, while our remaining 500-gram jar must reduce its shelf price by 65 cents to stay competitive, down to $7.50,” Mrs Rutherford said.

“This price reduction, although being passed onto consumers, is entirely subsidised by us, the supplier. We must ensure that the supermarket maintains its margin of 41.1 per cent, so this tactic is only getting rid of the smaller brands.

“We also have our beekeepers to consider, who are going to feel the effects from supermarkets taking out the small independent packers.”

Mr Littleproud said Labor has sat on its hands for its entire term of government, treating smaller suppliers like Tori and Chris with contempt.

“Tori is extremely brave to come forward but admits she could now face retribution,” Mr Littleproud said.

“By speaking out, she is taking an enormous risk. Under our plan, suppliers like Tori and Chris would not face this situation, because we will create a Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers.

“This will be a game-changer for farmers and suppliers because it will change culture and protect people like the Rutherford family. No supplier should have to risk their entire livelihood, just for speaking out.”

Background:

Buy Adleys Nothing But Honey Australian Raw Eucalyptus Honey Squeeze 400g | Coles

Buy Adleys Nothing But Honey Australian Raw Eucalyptus Honey 500g | Coles

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