The Queensland Parliament Supermarket Pricing Select Committee recently handed down its Inquiry Report into supermarket pricing. The Report provided eight recommendations including that the Queensland Government investigate the establishment of the Office of the Queensland Farmers’ Commissioner.
The Report promoted the findings of several concurrent and recently concluded inquiries into supermarket pricing. This included those initiated by Australian Senate Select Committees and the Australian Competition and Consumer Commission (ACCC), as well as the Independent Review of the Food and Grocery Code of Conduct. While taking heed to these findings, the Report also narrowed its focus its focus on Queensland-specific competition and pricing issues.
One such issue was the critical impact Queensland’s geography has on agricultural supply chains, with perishability during transport compounding the weak negotiating position of farmers in relation to retailers. Lengthy supply lines are also impacting the prices paid by Queensland consumers, particularly in remote areas of the state.
The report’s 5th recommendation, that the Department of Transport and Main Roads ensure freight subsidies continue to exist where necessary, therefore makes a lot of sense. Disappointingly changes made to the Regional Freight Transport Service Contract subsidy in April are already causing grocery freight costs to triple in many regional communities.
Other recommendations included that the Queensland Government engage industry in the development of a Northern Dairy Industry Strategic Plan. The Select Committee also joined other national inquiries in recommending the Government support measures to make the Food and Grocery Code of Conduct mandatory and enforceable.
Many issues that were repeatedly raised during the inquiry fell outside of the terms of reference but highlight some of the additional pressures relevant to overall farm viability. These included increasing input costs, including labour, electricity, compliance, and transportation and the very real impact these costs were having on farm enterprises unable to pass on these cost of production increases.
Whilst the limited scope of the inquiry resulted in a focus on the costs at checkout and not the broader farm viability issues, it has been valuable to shine a light on some of the important issues surrounding market transparency. It is important that the completion of this inquiry is seen as the beginning, not the end. There is much more work to do if we are going to address some of the barriers that stand in the way of ensuring a strong agri-food system in Australia for future generations.
As the State Government election draws closer, QFF will continue engaging all parties in discussions regarding the impacts rising input costs, changing land use, red tape and poor policy decisions are having on the agriculture sector and work to find solutions to ensure the long-term profitability and sustainability of Queensland farmers. Viable farmers are important not just to the future of the Queensland agriculture sector, but also to consumers who would like to continue to access and afford Australian food.