Newsroom

May 7, 2024

KATTER’S Australian Party MP Bob Katter is thanking growers for recommending that the Grocery Code be trashed and a proven law enforcement body, like the AFP, put in place to reel in the power of the supermarket giants.

In April, the Government handed down yet another report recommending little more than improved self-regulation. Increased penalties and making the code mandatory were additional statements “that will do nothing to deal with the heavy imbalance in market power between the major players.”

Mr Katter noted, “making the code mandatory is simply window dressing, as all the supermarket giants were already signatories.”

In his submission Mr Katter said farmers noted that such measures would do very little to support producers.

“The code by its very nature is a form of self-regulation by the supermarkets. Strengthening and making mandatory this self-regulation will do nothing. It will still be Ceaser judging Ceaser.”

Following extensive consultation with farming groups, Mr Katter’s submission suggested four key measures that government should introduce if it is serious about substantial and real reform.

These recommendations are:

• Abolish the Code;
• Provide for forced divestiture;
• Require a maximum 100 per cent mark-up;
• Appoint a strong proven enforcement body.

Further, Mr Katter said farmers in his region noted that added protections or negotiation rights for suppliers, suggested as part of the code, meant little as very few producers actually had direct access to the supermarkets.

“A minor number of producers have ‘vendor numbers’ which give them exclusive access to supply supermarket directly. However most producers can only supply supermarkets via agents, and this leaves the agents and retailer in control of the trade,” Mr Katter’s submission read.

“The code, rather than protecting producers, further enshrines and facilitates this arrangement allowing the supermarkets to indirectly wield their power through third-party agents.

“The code review should further explore these relationships and critically assess how the code itself supports and perpetuates the power imbalance by severely restricting the avenues by which producers can supply supermarkets.”

“Farmers and consumers are suffering at the hands of the supermarkets. We need substantial and significant reform not just window dressing.”