Ensuring Fairness: Why Bunnings’ Role in the Supermarket Debate Matters

Amidst the ongoing scrutiny directed towards supermarkets, marked by the initiation of six inquiries investigating their pricing strategies and interactions with suppliers and farmers, there exists a sector often overlooked: the farm industry. Greenlife Industry Australia (GIA), serving as the national representative body for commercial plant growers across the country, underscores this aspect, employing a substantial workforce exceeding 25,000 individuals.

It’s notable that many plants purchased for personal gardens or vegetable patches at Bunnings, Australia’s leading hardware retailer, likely originate from this very sector. Within the discourse surrounding the ongoing debates and inquiries, lies a crucial concern about the immense market infuence wielded by these companies, dictating prices, production levels, and trading conditions.

Joanna Cave, the Chief Executive Offcer of GIA, advocates for subjecting Bunnings to the same scrutiny as supermarkets and integrating them into The Food & Grocery Code of Conduct. This proposition stems from several key points:

• Plants, already encompassed within the Code, constitute a signifcant portion of Bunnings’ inventory, making the retailer a pivotal player in this domain.

• Bunnings operates as an unregulated monopoly within the greenlife sector.

• Offering a diverse range of products, including household essentials and pet supplies, Bunnings parallels the offerings of a conventional supermarket.

• A staggering twothirds of grower’s express dissatisfaction with their trading arrangements with Bunnings, with a signifcant portion experiencing pressure to accept subpar prices or even sell at a loss.

• Concerningly, many growers fear reprisals or losing business if they dare to negotiate for fair prices.

• Instances of nursery closures attributed to unfair practices further underscore the gravity of the situation.

GIA specifcally advocates for the inclusion of major retailers like Bunnings within the Supermarket Code under review by Dr. Craig Emerson. While the fnal report is slated for submission to the Australian Government by June 30, an interim report is anticipated to precede this, inviting stakeholder feedback. This push refects a broader commitment to ensuring fair and equitable practices across the retail landscape, encompassing not just traditional supermarkets but also infuential players like Bunnings.