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National

Farmers accuse supermarkets of 'ripping off' consumers amid fresh produce price-hike

The price of fresh produce is rising in Australian supermarkets. (ABC Riverina: Olivia Calver)

Farmers say they are not benefiting from any price-rise of fresh produce at supermarkets, amid accusations that retailers are price gouging.

NSW Farmers Horticulture Committee chairperson Guy Gaeta said supermarkets were pocketing extra profits made through price rises. 

"People are paying more for their fruit and veggies at the supermarket, but the farmers aren’t selling them for more, so who's really raising the prices here?" he said.

"They're ripping off the farmer and they're ripping off the consumer."

Guy Gaeta says farmers are not getting paid any more despite inflated costs at supermarkets.  (ABC News: Sue Lannin)

Dave Parsonage is a fruit and vegetable farmer near Condobolin in central-west New South Wales.

He and his wife Diane were often shocked by how much the supermarkets marked up prices.

"Iceberg lettuces were $3.80 [at the] Flemington markets [but they were] $7.50 in IGA, $6.90 at Coles."

A 'failure' of competition laws

NSW Farmers president James Jackson said the issue stemmed back to the "ongoing failure of Australian competition laws".

“We’ve suffered for years due to poor competition policy in this country and it's got to be fixed.

"My challenge to all the parties in this election is, 'Let's do something about it'."

The ARA warns prices could continue to rise for the next 12 months due to inflation. (ABC News: Danielle Bonica)

Retailers blame inflation

But Australian Retailers Association (ARA) chief industry affairs officer Fleur Brown blamed the price rises on inflation and supply chain issues.

She said accusations of price-gouging were not true and supermarkets were seeing a drop in profits as well. 

"Woolworths reported a reduction in its profit margin in Australian food most recently from 5.7 per cent to 5.1 per cent," Ms Brown said.

The company recorded a $1.79 billion net profit result in the 2021 financial year.

John Evans is selling part of his Geeveston farm because it is too hard to make a profit. (ABC Hobart: Erin Cooper)

Apple growers struggling

Many apple growers have said it has become increasingly hard to receive a profit on their produce.

John Evans is selling part of his Geeveston farm, south of Hobart, off the back of shrinking margins and flat demand, especially for older apple varieties.

He said his returns were unlikely to be good enough to continue.

"How many times can we do that?"

Fruit Producers South Australia fear apple growers could leave the industry. (ABC Hobart: Erin Cooper )

Calls for a pricing review

Fruit Producers South Australia chief executive Jose Gil said the state's apple growers had been struggling to break even amid the rising cost of production.

Mr Gil said he would like to see more transparency and supported a review into produce pricing.

"There certainly needs to be a review [to] make sure that the growers are actually … getting the money that they need to be able to continue to provide produce," he said.

"Otherwise we'll be looking overseas for produce and that's the last thing we need in this country.”

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