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Farmers issue supermarket price check

04 Feb, 2012 03:00 AM
FARMERS say they want answers from big-chain supermarkets about how they can afford to discount their vegetables by up to 50 per cent.

Coles and Woolworths supermarkets have both slashed prices on fresh fruit and vegetables.

Bishopsbourne farmer Stewart McGee, a member of the Tasmanian Farmers and Graziers Association vegetable council and pea committee chairman, is concerned about the impact the price drop could have in the long term.

Mr McGee and his wife Kerrie have a farm producing peas, beans, poppies, grains and lamb.

His produce is for the frozen market.

Mr McGee said while the price drop might help to move a backlog of fresh produce it would create bigger problems in the long-term such as a reliance on more imports, negative impact on food security and biodiversity with the risk of more disease and pests.

He also said it could put local farmers out of business by taking away their profitability.

For him, in the long term it meant farmers producing for the fresh market could enter the frozen food market.

Mr McGee said he wanted to know how supermarkets could afford to discount their vegetables by so much.

Coles could not be reached for comment yesterday.

The supermarket giant has said that by making fruit and vegetables more affordable it can provide a more certain market for Australian growers.

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comments


Date: Newest first | Oldest first
The fruit and vegetable growers and producers have been getting ripped off for years, probably decades, and so have we, the consumers. It's all about corporate greed for the inflated company executives salaries and bonuses and the shareholders too of course. Australia is the land of the great rip off, just have a look at the size of products we buy, smaller packaging of products, but the same price or increase in price. They are all doing it and the government hasn't got the guts to do anything about it, no wonder people shop on the internet from overseas and I dont blame them one bit, I do too
Posted by PB, 4/02/2012 6:34:13 AM, on The Examiner
BUY AUSTRALIAN GROWN!!! As long as the farmers are getting a fair share to earn a profit then the industry will survive. The labelling laws need to be strengthened and it is taking to long to change. This issue is not only here but also in New Zealand. They also want truth in labelling. Consumers have far too long been duped with smoke and mirrors. Why is it so hard for the polititians to implement these changes since they supported the tractor drive all those years ago. Is it time to do another tractor drive since 2012 is the YEAR OF THE FARMER.
Posted by konindy, 4/02/2012 8:13:35 AM, on The Examiner
I think the big retailers work on bigger margins than just sections of supermarkets. For example, overall 'storewide profit' or even 'statewide profit'. In effect what happens is, i.e. in this case, the fruit & veg section loses money but the losses are recovered in other areas within the store, or at the related bottle shops or bowsers.

It makes the farmers produce appear to be worthless.

IMHO the farmers would be better off asking to be paid in company shares rather than cash.


Posted by punchbowl_max, 4/02/2012 8:20:12 AM, on The Examiner
EASY they have already put other things up 20cents ,10cents ,30 cents. Go in there at 7am when the shop opens they employ someone to go around and change prices. When you buy the same things each fortnight its easy to see how they are supplementing prices NOTHING is ever Free.
Posted by humbug, 4/02/2012 10:15:58 AM, on The Examiner
Punchbowl Max. The Government should be looking into the percentage they allow the Supermarkets etc to claim for spoilage, in this day and age with the modern equipment they have it should be no where near as much as what is now allowed.
Posted by jonno, 4/02/2012 2:05:53 PM, on The Examiner
Yes the producers are being ripped off.

Where is the Federal Government and their worthless ACCC?

Posted by Brian, 4/02/2012 2:53:14 PM, on The Examiner
Yes - we need to support our wonderful farmers. We need to support everything Tasmanian (except for the government) and we can all play our part. However, I have to say that I went to Coles today and took advantage of cut price fruit and vegetables. The only price increase that I came across for my usual shopping was in the brand of coffee that I like. I could have bought a different brand that was reduced but chose not to. So - my usual items were not increased in price to compensate for the cut price fruit and veg. I am watching it closely though.
Posted by concerned, 4/02/2012 4:48:39 PM, on The Examiner
Why not consider joining forces Tasmanian farmers and start your own co-op selling vegetables direct to the Public under the your Own Tasmanian Farmers brand..Co-ops have been done successfully before..I'm certain the Tasmanian people would support you on the local scene...Footscray Rd is next day delivery on an AM sailing...that's closer than a lot of other transport...Flemington only two days..."Big Quality Produce from the Little Isle"..even sounds "Bling",..you're an Resilient Resourceful lot with a Premium First Class Product..I Always buy Tasmanian...Best of fortune...Keep Tasmania Alive
Posted by mic, 4/02/2012 5:46:27 PM, on The Examiner
I wonder if anything has changed? A few years ago the fruit and veg section of a Cole/Woolies shop was about 25% of the area of the shop yet made 35% of the profit.

Much easier to screw a small producer down as vegetable crops do not keep too well when once it is ready for harvest. You can leave a pallet of tinned peas in the shed for some time.

Need for transparency and to change the rules a bit so that collective bargaining is OK if a buyer has say > 20% of market.

Posted by John, 6/02/2012 12:17:14 AM, on The Examiner

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Bishopsbourne farmer Stewart McGee is concerned about the long-term impact of price drops by big chain supermarkets.  Picture: NEIL RICHARDSON
Bishopsbourne farmer Stewart McGee is concerned about the long-term impact of price drops by big chain supermarkets. Picture: NEIL RICHARDSON

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