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Concerns about the gap between supermarket prices and what farmers earn have been growing, even as grocery giants posted billion-dollar profits in 2023.
Nationals leader David Littleproud has been calling for an independent review of pricing arrangements between farmers and the Australian supermarket sector.
He says while the Senate is planning to look at supermarket pricing from February, the Australian Competition and Consumer Commission might be more effective in looking at price disparities.
"When you see sheep and beef prices dropping by 70 percent but only dropping by 8 percent at the checkout. When you're seeing zucchini farmers getting $2.20 a kilogram but they're charging $6.50, they're cleaning up and they're cleaning up at the expense of farmers and at the expense of the consumer. What we're saying is we just want fair prices from the paddock to your plate with transparency and fairness, and the people to do that should be the ACCC."
Now, the government has announced a review into the food and grocery code of conduct, to be led by former federal minister Craig Emerson.
The review will look at the voluntary code which Aldi, Coles, Woolworths and wholesaler Metcash currently subscribe to - and which says that retailers and wholesalers must always act in good faith towards suppliers.
David Littleproud says the code of conduct should be compulsory - and the penalties for breaking it made more serious.
"You've got to appreciate, this is a statutory review that was scheduled to take place anyway. And this is about the broad architecture of the code of conduct. We believe openly - the Nationals - that this should be a compulsory code, not a voluntary one. We believe that the penalties shouldn't be where they are at the moment, which is about $64,000. The supermarket could pull that out of one of their tills in Sydney and Melbourne to pay for that if they've done wrong."
Woolworths has made no comment.
But Coles spokesperson Martine Alpin says the code is already working the way it should.
"We're willing participants in the voluntary code of conduct. In fact, we helped established that back in 2015. And it is enforceable, so we believe that it's working really well. But we welcome any review that's going to help Australians with the cost of living."
Supermarket prices and supermarket relationships with customers will not be part of this review.
Still, those concerns are also a driving force.
Prime Minister Anthony Albanese has said the probe is one of the ways the government is looking to bring down the cost of goods at the supermarket.
Craig Emerson says the success of supermarkets is not being shared by their suppliers.
"Supermarket prices look pretty healthy. You wouldn't be able to say to farmers that their profits are all that healthy and if you ask consumers, and I do a lot of my own shopping and prices definitely have been rising sharply."
He says the review will identify what needs to be addressed.
"If we did nothing, then even the existing voluntary code of conduct would expire in 2025. So it's got to be replaced - either renewed or improved - or have another approach. And so we're considering all options."
Martine Alpin says Coles is already relentless in its efforts to reduce prices and act fairly.
"We have been on a mission to reduce prices for more than ten years now. It's something we are really passionate about and we continue to work out where we can reduce prices for our customers. It has been a really tough time with inflation across the board for a lot of industries, and we know that our customers need to have the ability to pay for groceries every week and put food on the table."
National Farmers Federation President, David Jochinke says he hopes this review will lead to some positive change.
"What we don't want to see is just another inquiry that carries recommendations that aren't acted on. We have had inquiries into the grocery sector before, there has been some very strong recommendations come out that if were adopted, we wouldn't be having this discussion today. And what we want to do is see some meaningful change, not only around the grocery code but actually around the supply chain and competition laws, so that we can get better transparency for farmers, make sure that there is fairness in the contracts and therefore have greater understanding if there is, someone has broken their part of the obligations, that there is a penalty at the back end of that so that people can be held to accountability."
