Farmer Dale Williams has heard many horror stories about dealing with supermarkets from those in his industry, but he would never share them with you.
“There’s this fear of retribution from our big buyers, where you can basically be put on holiday from them buying your product if you appear to be criticising,” Mr Williams said.
Despite Four Corners’ recent exposure of supermarket tactics disadvantaging shoppers and suppliers, the North Queensland grower was one of just a handful willing to risk speaking out.
“Unless you’re going to expose the problems and discuss them, it’s very hard to identify solutions,” he said.
With the first hearing in the newly established parliamentary committee on supermarket prices due to start in Hobart today, and several other inquiries underway, grower groups have been begging farmers to come forward.
But Mr Williams said without legal protection for their supply agreements, too many still feared retaliation from the retailers.
“We rely on these businesses so we can’t afford to risk damaging or putting those sales at risk,” he said.
The major supermarkets said they were committed to dispute resolution through the Food and Grocery Code of Conduct, despite a Treasury review recommending changes to the mediation process.
Shoppers in the dark
After hearing thousands of similar stories from their members, Queensland Fruit and Vegetable Growers (QFVG) developed a campaign to highlight the power imbalance with retailers.
But when chief executive Rachel Chambers approached members to take part, only three were prepared to go public.
“Growers were rightfully scared to death and said we know what you’re trying to do, and we support you, but we can’t speak up,” Ms Chambers said.
“They’d tell examples … and when I would say, ‘Would you say that on tape?’, there was always a fear that their contract would be cancelled.”
But without the evidence, shoppers may never know the full extent of the problems with the agreements, some of which Ms Chambers said had “legality issues”.
“They’re [supermarkets] changing retail specifications, they’re using home brands in a way that shafts growers,” she said.
“We are in a once-in-a-generation opportunity to get this right … I don’t think that’s lost on growers.”
Fruit grower Mr Williams said in the same way employers could not terminate an employee who made a complaint, retailers should not be able to terminate agreements with suppliers who raised issues.
“We’re asking for the same freedom of expression and to be able to open up these issues,” he said.
“I think that’s only a fair thing that growers or producers should expect.”
Arbitrating the arbiter
In a statement, a spokesperson for Coles said growers could submit complaints through the formal independent complaints handling process.
“We highly value our relationships with Australian farmers from around the country which allow us to bring customers quality produce every day,” it said.
A Woolworths spokesperson said its suppliers could access a confidential whistleblower hotline.
“Our Trade Partner Complaints Integrity Policy makes our commitment clear — no supplier should experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,” the spokesperson said.
An ALDI spokesperson said it fully supported making it easier for suppliers to raise concerns.
“We set high standards when it comes to collaborating with our suppliers, and we have a reputation of being a fair and respectful partner to them,” the statement said.
“We will remain willing partners of the code no matter what outcome the review takes.”
Under the voluntary Food and Grocery Code of Conduct, terminating a supplier’s contract because they raised a complaint would be considered a breach that could attract significant penalties.
However, proving that was the reason for termination could be challenging.
National Farmers’ Federation horticulture council chair Jolyon Burnett said the reluctance of some growers to speak should not be interpreted as the system working.
“It should be understood to be a real fear for their livelihoods,” he said.
He said consumers were also being disadvantaged.
“Often consumers are paying more than they have to, or being misled to think that the price they’re paying is a sustainable price that justly and fairly rewards the grower of that product,” he said.
In September 2023, a Treasury report into the dispute resolution framework in the code made several recommendations, including enabling code arbiters to mediate and for suppliers to seek information from the arbiters without making a formal complaint.
Stories from farms and country towns across Australia, delivered each Friday.
Abbey Halter and Lydia Burton
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