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Queensland premier meets with supermarket chains over cost-of-living concerns, allegations of price-

2024.01.18

Queensland Premier Steven Miles says he has had "productive meetings" with representatives from major supermarkets to discuss soaring grocery prices and alleged price-gouging.

Mr Miles wrote to Coles, Woolworths, IGA and Aldi last week requesting a meeting with their chief executives to discuss his "growing concern about a widening gap between the prices farmers receive for their produce and the prices customers pay at the check-out".

He said he met with executives from Coles, Woolworths and Aldi on Thursday.

"An outcome of the meeting was that supermarkets have agreed to sharing information and analysis on prices, so we can better understand what people pay at the check-out," Mr Miles said in a statement.

"I look forward to receiving this and we will work with the supermarkets, farmers and growers on solutions that will take pressure off household budgets."

 

Questions have been raised about prices customers are paying at the check-out, as major chains report huge profits.(ABC News: Peter Drought)

Earlier, Mr Miles told ABC News Breakfast there appeared to be evidence of price-gouging.

"It looks that way to me," Mr Miles said.

"I've heard these stories first-hand from farmers about how these [supermarket] supplier agreements are driving down farmgate prices right when their costs are going up.

"At the same time, families are paying too much for fresh food at the supermarket just to feed their kids.

"The starting point here is scrutiny and transparency.

"Queenslanders deserve to know just how much supermarkets are paying farmers and why they're not paying less for their groceries."

 

Premier Steven Miles said he's heard from farmers who are suffering as the supermarkets they supply drive up prices.(ABC Far North: Christopher Testa)

Mr Miles said he shared the experiences of Queensland farmers directly with the supermarket executives, discussing "the differences in prices between what they're getting at the farmgate and what Queensland families are paying at the grocery store". 

Supermarket chains, in particular the two major suppliers Coles and Woolworths, have been under scrutiny for recording large profits while raising prices substantially.

Federal review to assess 'broken' system

The federal government announced a review of the voluntary Food and Grocery Code of Conduct, led by former Labor minister Craig Emerson, earlier this month.

It will assess its effectiveness at improving relationships between supermarkets, distributors and suppliers, including farmers, and whether the code should be made mandatory.

Mr Miles said he believed it should be compulsory.

"My personal view is that it shouldn't be voluntary and that there should be tougher penalties that really make people think twice before they price-gouge," he said.

"Many of the powers are at a national level but I've been talking with the prime minister [Anthony Albanese] as well as the Agriculture Minister Murray Watt about what they may be able to do, and I really welcome that review of the grocery code.

"At a state level, we do have the ability to put this kind of transparency into the system to make sure that Queenslanders can see why and how the prices that they're paying are set."

 

A federal review has been announced to find out why customers are paying so much at the check-out.(Supplied: Woolworths Group)

Queensland Fruit and Vegetable Growers association chief executive Rachel Chambers said farmers fear retribution if they make a complaint to supermarkets.

"Growers don't trust the system that is in place that they can escalate these behaviours to," Ms Chambers said.

"They are fearful of commercial retribution, which is their entire business, their life and livelihood, so the process is broken."

The grocery code review is due by the end of the financial year.

A separate senate inquiry is set to examine supermarket pricing this year, including whether an effective duopoly between Coles and Woolworths has led to opportunistic pricing, price mark-ups and "discounts that are not discounts".