The Northern Rivers Times
36 RURAL NEWS
February 1, 2024!!!
Cost of living relief must start at the farm gate
Australia’s peak farm body is urging the Federal Government to put its agricultural policies under the microscope as it prioritises cost of living relief for Australians. NFF President David Jochinke warned a range of policy pressures on farmers were risking production and could fuel price inflation at the supermarket checkout. “We’ve seen this government ignore
the needs of the farm sector with policies that erode access to the basic ingredients of farming – from water, to workers, markets for animal exports and even agricultural land. “The Government’s water buybacks plan rammed through Parliament last year threatens to decimate over $850 million in farm production. “Inaction on worker shortages has left
farmers choosing not to plant crops, and processors operating at reduced capacity. “Tens of thousands of kilometres of transmission lines and planned carbon offsets need to be carefully managed so we don’t take precious farmland out of production forever. “We need to be looking at the cumulative impact these policies will have on our farm sector,
now and for future generations. “We know the best way to keep food prices stable is to keep farmers farming, not take away the basics they need to grow food and fibre,” Mr Jochinke explained. The NFF welcomed recent moves to investigate the conduct of major supermarkets, but warned this needed to go further to deliver results. “It’s great to see the
Government starting to look at the supermarkets to make sure farmers and consumers are getting a fair deal. “But there are other players clipping the ticket, so these inquiries need to look at that whole supply chain.” The NFF also pointed to upcoming cost increases like the proposed biosecurity levy as evidence the government wasn’t listening to food and
fibre producers. “Every industry group and even the Productivity Commission has called out the poor design of the biosecurity levy. It’s about as popular as a root canal. “If the Government is serious about fixing the cost of living, it needs to take a serious look at how its own policies are impacting food and fibre production,” Mr Jochinke concluded
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NSW Farmers is urging the Australian Competition and Consumer Commission (ACCC) to initiate an inquiry into the supermarket retail sector, highlighting the absence of fair prices for both consumers and farmers. According to NSW Farmers President Xavier Martin, the surging costs of groceries have placed immense strain on consumers and their families, while farmers continue to receive inadequate prices for their produce. Martin emphasized the need for a transparent and equitable distribution of margins through the supply chain to alleviate the burden on farmers and consumers. The organization contends that anticompetitive practices by supply chain intermediaries are disproportionately
affecting farmers, with reports of major retail chains exerting undue power. Many farmers face the dilemma of accepting lower prices that fail to cover production costs, often with limited negotiation options. Some even find themselves locked into exclusive contracts with a single buyer, further restricting their market access. Consumer research indicates a substantial increase in the average weekly cost of groceries, soaring by
$37 between February 2022 and February 2023, exacerbating the challenges faced by families in the current economic climate. While former competition minister Craig Emerson’s review of the food and grocery code of conduct is underway, NSW Farmers President Martin expresses skepticism about its effectiveness. The current code, covering only a fraction of the supply chain, is seen as inadequate in addressing
fundamental issues such as price transparency and the excessive profits garnered through price gouging. Martin insists that relying solely on verbal testimony from stakeholders, as proposed in the Emerson review, falls short of a rigorous analysis by the ACCC. A comprehensive examination of consumer prices, supplier payments, and supermarket costs is deemed essential to address the root causes of the challenges faced by both farmers and consumers. Failure to conduct a thorough ACCC review, warns Martin, may force more farmers out of the industry, exacerbating food and fiber supply shortages and contributing to the escalating food costs experienced by consumers today.
