Why our farmers get so paid little yet we're forced to pay so much
29.11.2006
By KATHY SUNDSTROM
Sunshine Coast Daily
SUNSHINE Coast farmers are sick and tired of being "rorted" by the major supermarket chains and have backed the call of federal agricultural minister Peter McGauran for an investigation by the Australian Competition and Consumer Commission.
Mr McGauran said the supermarkets would be called on to explain their pricing structure as the ACCC examined whether or not there had been anti-competitive bargaining.
The call came after it was revealed drought-stricken farmers were being forced to sell their stock cheaply, but retailers were not charging less on the shelves.
"The gap between the prices paid in the saleyards, especially now that there’s a flood of sheep and cattle for sale from drought-affected farmers, to what consumers are actually paying is so much more obvious," Mr McGauran said.
Woolworths argued yesterday that it was not profiteering. A spokesman said the company was not buying most of the cheap stock from stockyards because it was of "mixed quality" and "very few met Woolworths' quality standards".
But strawberry farmers said they were forced to sell strawberries at about $1.40 a punnet to Woolworths and Coles which then went on to make "about 75% to 80% profit", selling punnets at prices between $3.50 and $5.
Jon Carmichael, of Strawberry Fields, said the major chains were "rorting everybody".
Dairy farmers were also forced to sell their milk to the supermarket chains for a mere 36.9 cents a litre ($1.20 for three litres), which Woolworths then on sold for about $3.19 for three litres.
Kenilworth dairy farmer Shane Paulger was optimistic Woolworths would soon increase this price as farmers faced the worst drought in their history.
"I'm hopeful Woolworths will see the situation we're in and help us out as it is very grim - the worst I've seen it," Mr Paulger said.
State member for Nicklin Peter Wellington was not so optimistic the large chains would do the right thing.
"When I was trying to intervene on behalf of the dairy industry at the time of deregulation I spoke to the senior people in Woolworths and their response was 'We're not in the business of doing what's good for dairy farmers, we are in the business of making profits for shareholders'."
Mr Wellington said the federal government had to intervene.
"Coles and Woolworths have too much power. The drought is having devastating effect in Australia and Coles and Woolworths are taking advantage of that," he said.
"We need legislation to break that power." Regular Woolworths shopper Stacy Madden said she had not been aware of the price difference between retailers' charges and consumer charges. |
