AUSVEG acknowledges the release of the final report of Australian Competition and Consumer Commission’s (ACCC) supermarkets inquiry, as well as the Government’s in principle support of its recommendations.

The report has a strong focus on the fresh produce category and contains a range of recommendations aimed at securing a fairer go for suppliers. These validate the experiences of vegetable grower-suppliers to the big supermarkets, who have continued to express concerns about the power imbalance leading to them shouldering disproportionate risk, uncertainty and financial burden that is threatening their viability. AUSVEG has continued to advocate on these issues during the many recent inquiries into the supermarkets.

The ACCC’s support for measures that provide growers with greater certainty, clarity and transparency are welcome, as too is the call to harmonise and streamline the various auditing and compliance schemes retailers require suppliers to comply with.

AUSVEG further supports the ACCC’s recommendation to curtail retailers’ ability to override provisions in the Food and Grocery Code.

AUSVEG commends the Government which in its response to the ACCC report has committed $2.9 million in funding to go to fresh produce industry associations to deliver targeted education programs. These will upskill suppliers on retail negotiation, and to understand and enforce their rights under the new Food and Grocery Code. This was a key commitment sought by AUSVEG in its 2025 Federal Election Priorities.

AUSVEG CEO Michael Coote said the ACCC report was further acknowledgment of the concerns raised by grower-suppliers to the supermarkets during many recent inquiries into the sector.

“While a range of measures recommended by the ACCC have the potential to provide growers with greater certainty and transparency, and improve their bargaining position, more detail still needs to be fleshed out about how these will work in practice. As always, whether or not these recommendations will improve business conditions for grower-suppliers to the retailers will be seen in their implementation, which also must include consideration of avoiding additional red tape and compliance consequences.

“Throughout our regular engagements with the many inquiries into the supermarkets during the past 18 months, AUSVEG has continued to emphasise the fundamental point – growers need to be paid fair and sustainable prices that allow them to stay viable, and continue supplying Australian consumers with fresh, healthy and affordable vegetables.”

“The ACCC’s recommendations have the potential to support this objective, and contribute to a more level playing field for growers, but this needs to translate into positive, real-world improvements, for growers and the entire supply chain.”

ENDS

About AUSVEG: AUSVEG is the peak industry body for the Australian vegetable, potato & onion sectors, representing over 3,600 growing businesses that employ tens of thousands of workers and produce over 3.8 million tonnes of produce, with a farmgate value of $5.7 billion.

MEDIA CONTACT: Andrew MacDonald, National Communications Manager, AUSVEG
Phone: 03 9882 0277, Mobile: 0406 836 330, Email: andrew.macdonald@ausveg.com.au