In response to Dr Craig Emerson's review of the Food and Grocery Code of Conduct, the federal government said it will adopt all 11 recommendations and prioritise new legislation to protect suppliers from retribution by supermarkets.
It will also create an anonymous supplier and whistle-blower complaints pathway through the ACCC.
"We understand that more needs to be done to achieve a competitive and sustainable food and grocery sector that works for Australian farmers and families. We have directed the ACCC to conduct an inquiry into supermarket pricing, with a final report and recommendations due in February 2025.
"We have also funded CHOICE to conduct quarterly price monitoring reports to provide consumers with more information about where to access the best deals, with the first report out later this month," the government said.
In regard to Emerson's fifth recommendation, outlining mediation and arbitration mechanisms, the government said it appreciated that many suppliers support retaining the informal, confidential and low-cost process for resolving dispute. It would retain this informal path as well as independent mediation and arbitration.
"The government notes that Coles, Woolworths, Aldi and Metcash, have agreed in principle to comply with a remedy involving compensation of up to $5 million when recommended by their code mediator and agreed by the supplier.
The government’s view is that the Australian Small Business and Family Enterprise Ombudsman is best placed to manage the list of suitably qualified mediators and arbitrators.
Ausveg CEO, Michael Coote, said it was hoped implementation of the report’s recommendations would lead to improved relations between retailers and fresh produce suppliers, and help provide growers with greater certainty at a time when the industry is experiencing a cost-of-production crisis.
Ausveg is the peak industry body for the vegetable, potato, and onion industry, representing more than 3600 businesses that produce over 3.5 million tonnes of produce with a farmgate value of more than $5.8 billion.
“Retailer relations with suppliers are complex, and we congratulate Dr Emerson on listening to concerns raised by industry, and by extension the Government for committing to implement the recommendations.
“If implemented effectively, many of these recommendations have the potential to improve business relationships between growers and retailers, and may help ensure growers receive fair and sustainable prices for their produce,” said Coote
Coote was cognisant that there was "some way to go" before the recommendations become operational.
“Once the glare of this intense political and public scrutiny on retailer practices that has characterised much of this year subsides, we must have in place workable measures that contribute to the long-term health of a vegetable industry that is key to the long-term health of Australians, and Australia’s food security,” he said.
The National Farmers Federation (NFF) said it was a significant step in its campaign to level the playing field for farmers.
NFF acting CEO, Charlie Thomas, said “We’ve always said that to protect growers, we need a code with strong enough deterrents to influence behaviour in the supply chain. 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.”
The NFF was disappointed Emerson’s recommendations didn't extend the code beyond supermarkets to the greenlife sector that supplies Bunning’s nurseries.
Woolworths pointed out that it was a founding signatory to the code and reiterated its support for the code to be mandatory.
“We firmly believe healthy retailer and supplier relationships are key to the continued success of our sector, as well as serving the needs of millions of customers,” Woolworths’ statement said.
It welcomed the decision to retain fast and cost-effective avenues for dispute resolution, particularly for smaller suppliers.
“A key topic of this review is the supply of fresh fruit and vegetables, and we note the specific recommendations for this sector in the final report.
“While there is broad support for greater price transparency in the sector, there isn’t yet consensus on how to deliver it.
“As a further step, we are willing to support an industry and government led price transparency initiative to assist on-farm decisions,” it said.
