Australian retailers of greenlife products, including major supermarkets and big box retailers, have accumulated significant market share and far too much bargaining power, which they use to suppress prices paid to production nurseries and inflate the prices they charge to consumers.
The price setting and other practices of these retailers impact regional communities disproportionately, having the effect of transferring wealth from these regional communities directly to supermarket shareholders.
In a cost-of-living crisis, the Federal Government should step in where the drive within public companies toward greater profits is compromising the sustainability of the greenlife industry and consumer access to affordable greenlife products.
The Federal Government should legislate to put Big Box greenlife retailers under the Food & Grocery Code of Conduct, effectively giving nursery growers the same protection as food growers. Alternatively, a stand alone Greenlife Code of Conduct should be legislated to balance the bargaining power between Big Box retailers and nursery growers.
The Federal Government should properly resource the ACCC to monitor and enforce compliance with competition law. This should include giving the ACCC powers to monitor retailers’ trading practices and audit retailers for compliance with relevant codes.
The Federal Government should introduce divestiture powers to act as an ultimate sanction for gross and malicious breaches of market power by supermarkets and Big Box stores.
The Federal Government should amend competition law concerning collective bargaining class exemptions specifically for horticulture businesses to make this more accessible and introduce legislation to compel buyers to engage with groups of growers.
