Supermarkets abusing their powers, Senate inquiry hears
A Senate inquiry has been told the big supermarkets are abusing their power and should be broken up before there is a societal breakdown.
A committee in Melbourne is currently looking into the market power and food pricing practices of Australia's major supermarkets amid the current cost of living crisis.
The inquiry today heard Australia's big supermarkets were putting farmers out of business and placing undue pressure on customers.
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Customers shop for essentials during the first Coles Community Hour at Coles Southland on March 18, 2020 in Melbourne, Australia. Martin Keep/Getty Images for Coles
Financial counsellors told the hearing that more people have been struggling to feed their families and that it was the worst it had ever been.
The inquiry heard Coles had begun installing anti-theft locks to stop struggling customers shoplifting meat.
Farmers also approached the inquiry with a list of concerns, claiming that apples were on sale for more than twice as much as they'd been paid for the produce.
Michael Crisera from Fruit Growers Victoria said more than one-third of vegetable growers were considering leaving the industry and felt they were being squeezed out.
"This is not sustainable, current codes of conduct are not working," he told the inquiry.
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Farmers claim produce is being sold for twice as much as what they were being paid. Nine
A final report on the major supermarkets will be handed to the government on May 7.
It's likely to hold a recommendation to hand the watchdog powers to bust up Coles and Woolies.
Senate inquiry chairman Nick McKim is pushing for the supermarkets to sell part of their operations.
"The giant supermarket corporations are ruthlessly using their market domination to do over farmers, to do over their competitors and to do over shoppers," McKim said.
"It is not an outrageous comment to say that that could lead to societal breakdown in Australia.
"That's how serious this situation is."
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