Coles calls on Jeff Kennett to deliver fair go for farmers

One-time supermarket nemesis Jeff Kennett has become an independent arbiter in the dispute between Coles and its suppliers.

He will oversee the introduction of Coles’ new charter that will guide its dealings with the farmers who supply its prime produce.

The former Victorian premier said if Coles didn’t accept his recommendations, he would “walk away from the gig”.

“My findings will be binding on Coles but not binding on suppliers,” he said.

Mr Kennett is a left-field choice for the role considering two years ago, he claimed bread Coles advertised as fresh-made, had been partially prepared overseas.

The Federal Court found Coles had been misleading.

Mr Kennett said that history showed he was the right man for the job.

“I will continue to be that vocal independent voice,” he said.

Suppliers say mediation is a step in the right direction.

“I think it’ll be a really effective way for us to resolve disputes,” farmer Belinda Adams said.

Industry groups also cautiously welcomed the move, but questioned how independent the role would be.

“It’s important that the arbiter is able to act at the level of an arm’s length,” Ausveg’s Andrew White said.

In its new charter, Coles promises to negotiate in good faith, not vary agreements without consent, respect suppliers’ businesses and provide a low-cost dispute resolution system.

The charter will not directly affect prices in the supermarket aisle, but it will provide peace of mind to know that farmers have a chance at a fair go.