The Federal Government has committed to a series of reforms aimed at regulating supermarket interactions with suppliers, following an independent review led by former Labor MP Craig Emerson. The review, part of a broader investigation into supermarket pricing practices amidst criticism of their impact on Australia’s inflation, has spurred significant changes.
According to a joint media release from Treasurer Jim Chalmers, Agriculture Minister Murray Watt, and Competition Minister Andrew Leigh, these reforms are intended to ensure fairness for families and farmers while enhancing competitiveness in the supermarket sector: “This is about getting a fair go for families and a fair go for farmers. Our efforts will help to ensure our supermarkets are as competitive as they can be so Australians get the best prices possible. We’re cracking down on anti-competitive behaviour in the supermarkets sector so people get fairer prices at the checkout.”
However, concerns have been voiced by stakeholders such as the Red Meat Advisory Council (RMAC), which expressed reservations about mandatory compliance potentially disrupting established supplier relationships and leading to costly litigation: “RMAC has concerns that making the Code mandatory would compel suppliers to pursue disputes with retailers through litigation, resulting in a protracted and costly process. Due to the cost and likely destruction of the relationship, it is highly unlikely that a supplier would have the resources to pursue a resolution through legal means.”
In contrast, the National Farmers’ Federation (NFF) welcomed the review’s findings as a step towards fairer competition, with Interim CEO Charlie Thomas emphasizing the need for effective deterrents: “These changes should finally give the code the clout it needs to protect farmers. It will hopefully mean that farmers can speak up without fear of retribution, and we’ll start to get a clearer picture of the issues at play.”
NSW Farmers’ Horticulture Committee Chair Jo Brighenti-Barnard echoed cautious optimism about the reforms but highlighted ongoing challenges: “A mandatory code with significant penalties is something we’ve been seeking, and we welcome this, but they need to be a real deterrent, not just a cost of doing business.”
While the final report of the Food and Grocery Code of Conduct Independent Review by Dr. Craig Emerson has been endorsed by the Federal Government, stakeholders emphasize the necessity for continued vigilance and comprehensive reform efforts to ensure fair outcomes across Australia’s supermarket supply chains.
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