Albo Wants To Take A Bite Out Of Supermarket Price Mark-Ups

Anthony Albanese has appointed Dr Craig Emerson to lead a review of the Food and Grocery Code of Conduct amidst fury that Australia’s big supermarkets are price-gouging and not passing on savings to consumers.

“Our farmers are providing produce at cheaper levels, but that isn’t being passed on to consumers and it’s not good enough,” Albanese said on Sky News on Tuesday night. Federal Labor is also looking to make cost of living relief its main policy ahead of the next election.

Emerson, who served as competition, trade and small business minister in the Rudd and Gillard governments, will lead a review of the Code and seek to establish whether the current voluntary industry-led regulatory scheme is fit for purpose and whether stricter government mandates should be introduced.

“We have been clear – if the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too,” said the Prime Minister.

“Supermarkets have a duty to make sure they’re providing affordable options for all Australians, especially when they’re making savings on their own costs.

“If there are further steps that are needed then the government will not hesitate to take action,” he added.

Earlier this week, the Coalition accused the major supermarkets of adding “extraordinary” retail mark-ups on the food they purchase from suppliers.

With Woolies and Coles locked in an eternal price battle, the news of the review will doubtless be good news for Aldi, which has positioned itself as the cheaper alternative for a while.

Nationals leader David Littleproud this week labelled Coles and Woolworths the “worst corporate citizens in this country” and called for the ACCC to launch an investigation into alleged price gouging.

Littleproud pointed to cattle prices dropping by between 60 and 70 per cent in June but supermarket beef prices only fell eight per cent. Melon producers, he added, were being paid $1.50 per kilo but shoppers were being charged more than $5 per kilo.

Woolworths said in December that prices for its meat, fruit and vegetable categories were falling. The grocer also said that Australian food and grocery inflation was lower than headline inflation.

“We are very aware of the pressures facing many Australian families,” Woolworths Group chief executive Brad Banducci said at the time.

Coles said last month that fresh food sold at its stores had experienced deflation of 2.3 per cent during the July-September quarter and that the company was “always exploring ways to reduce prices on the products we sell”.

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