time to hold the supermarket duopoly to account

By Nick McKim, Senator For Tasmania   

 

For too long Coles and Woolworths have ruthlessly used their market dominance to put the squeeze on the farmers they buy from, their workers, and the people who shop there. It’s time the supermarket giants were held to account, and that’s where we Greens come in.

The cost of living crisis is hitting Australians hard. While corporate profits across the economy are soaring, rents and mortgage repayments are going through the roof. Coles and Woolies are raking in billions every year while many of their customers are struggling to put food on the table.

As the two dominant players in the supermarket sector, their pricing strategies have a profound impact on the material lives of millions of Australians.

The stark contrast between corporate greed and community need underlines the urgency of addressing this issue head-on.

That’s why the Greens established a Senate Inquiry into the supermarkets, aiming to shine a light on predatory pricing practices and find ways to mitigate their impact on Australians.

Since launching the inquiry, we have been inundated with stories of people struggling to make ends meet, presenting evidence of exorbitant price increases that far outstrip any reasonable justification based on costs.

A survey we conducted found that a third of people are skipping meals, while more than half are buying less fruit and vegetables than they otherwise would as a direct result of Coles and Woolworths’ pricing.

This alarming trend not only jeopardises people’s health and well-being, but also highlights a broader issue of food security and accessibility in our communities.

Behind these statistics lie real human stories of distress and hardship.

People are being forced to compromise on their health and well-being while supermarket corporations are raking in billions in profit.

Corporate greed is eroding the basic standards of living in this country.

And those price rises are not flowing through to our farmers and primary producers, some of whom are still being paid what they were five years ago.

Not surprisingly, more than 90% of people would shop elsewhere if they had the opportunity.

Our inquiry will take on the entrenched market dominance of Coles and Woolworths head on, looking at ways to ensure that suppliers, workers and customers get a better deal.

Throughout this process, we’ve heard from farmers all over the country. We’ve heard firsthand accounts of the impacts of supermarket practices on their businesses and communities.

These discussions have provided crucial evidence for the inquiry and reinforced the need for significant policy changes to protect Australia's agricultural sector and the food security it provides for our country.

It has become clear that the supermarket corporations first squeezed their suppliers, then they turned on their staff, and now they seem to be turning on their own customer base.

They have been able to do this because of the immense political power they have accumulated, and acquiescent major parties too afraid to take them on. The supermarket duopoly goes hand in hand with the political duopoly. 

They don’t make those massive political donations out of the goodness of their hearts.

Since we established the Senate inquiry at the end of 2023, there has been a flurry of activity by the Albanese Government as Labor plays catch up.

They have announced a review of the Food and Grocery Code of Conduct, as well as an ACCC inquiry into the pricing practices of the entire supermarket sector.

Neither of these would have happened without the Greens setting the agenda. 

But the test of the Prime Minister won’t be the inquiries he establishes. It will be what action he ultimately takes.

The Greens are at the forefront of this fight, and that’s where we’ll stay.

There is a future where the supermarkets pay a fair price to farmers, where their workers get fair pay and conditions, and where food and groceries are priced so everyone can have a dignified life.

But to get there things will need to change. We’ll need to smash the duopoly for a start.