Farmers fear being frozen out by supermarket giants

Producers say they lack negotiating power when dealing with the major supermarket chains. (Dave Hunt/AAP PHOTOS)

Fruit and vegetable providers depend on supermarkets but lack negotiating power and face significant costs to supply the industry giants, an inquiry has heard.

Producers are highly reliant on Coles, Woolworths and Aldi for vegetable sales, the industry's peak body told the Australian Competition and Consumer Commission probe on Friday.