Farmers shun Coles, Woolworths amid grocery price anger as ACCC launches probe
/ By Faith Tabalujan and Abbey HalterRoss Marsolino has been feeding Aussie families for more than 40 years with the eggplants, tomatoes, and zucchinis he grows in northern Victoria.
But the Toolamba producer said he was losing money when he sold his vegetables to supermarkets.
"We're getting $2.40 a kilo for our zucchinis, which is 40 cents a kilo above what it costs us to grow them," Mr Masolino said.
"But the supermarkets are retailing them at nearly $7 a kilo."
Mr Marsolino likens the mark-up to "price gouging" and says many farmers are struggling to stay afloat.
"Our fertiliser is dearer, our chemical bills are dearer, fuel is dearer … yet we're getting the same amount for our product that we were 10 years ago," he said.
"So we're at our limit now."
Mr Marsolino's comments come as Coles and Woolworths face claims of marking up food prices, prompting an ACCC-led inquiry into the supermarket sector.
ACCC deputy chair Mick Keogh told the ABC the inquiry would examine whether supermarkets were treating "farmers and other suppliers fairly" and "reasonably pricing goods for consumers."
Mr Marsolino said major supermarkets had too much control.
"I've been a farmer, a fruiterer, and a wholesaler, so I've seen all sides of the industry … but this is not how it should be," he said.
"I think the supermarkets have realised that they can dominate and the government has allowed them to do this, plain and simple."
Growers shun giants
Shrinking margins have prompted some farmers to leave the retail sector altogether.
Rachael Croucher, who manages the family-owned Whitlands Blueberries farm in north-east Victoria has been selling her produce exclusively at farmers' markets for two years.
"In the past, we supplied an agent, but now we just concentrate on the farmers' markets where we can get a little bit better money," she said.
"It also means we can chat to our customers and educate them about seasonal eating, so we're not just part of the supply chain."
Ms Croucher said retail prices should be regulated.
"Supermarkets are getting produce on the shelf quite cheaply now, but we as farmers still need to cover our costs and make some money," she said.
Queensland pineapple grower John Zelenka said he ended his contracts with major retailers 23 years ago.
"We used to supply to Coles and Woolworths locally, and then they changed their system to where their produce must go through a central marketing point," he said.
"They were giving you a contract and setting a price that probably didn't reflect the premium quality of your fruit."
Mr Zelenka instead supplied farmers' markets and independent grocery stores such as IGA.
"A lot of people buy their fruit and vegetables there because it is fresh," he said.
"It might not be that much cheaper than Coles or Woolworths, but the farmers are actually getting a fair share."
A Woolworths spokesperson said the retailer was committed to providing certainty and transparency to growers.
"The supermarket price of fruit and veg is determined by what we pay our farmers for each variety," the spokesperson said.
"We pay farmers the market price for their produce, which can vary throughout the year due to weather, seasonality, supply and demand."
A Coles spokesperson said the supermarket values the work and perspectives of farmers.
"Growers who may have concerns are encouraged to reach out to their Coles team member, or we also have a formal independent complaints handling process ... available to be accessed by all our farmers and suppliers through the Coles Supplier Portal," the spokesperson said.