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Price gaps force Victorian grower to stop production amid supermarket disputes

In northern Victoria, a high-tech greenhouse grower, Ross Marsolino, has ceased the cultivation of eggplants, tomatoes, and zucchinis, a decision driven by the growing disparity between the farmgate prices and the retail prices at supermarkets. This shift marks the end of a 40-year tradition of supplying Australian families with fresh produce. Marsolino highlighted the stress of maintaining a viable operation under these conditions, particularly noting the challenge of managing a workforce of 150 people when the compensation for their produce fails to reflect its retail value. For instance, a product sold to supermarkets for $1.60 per kilogram would retail at $4.99 per kilogram.

The issue of price discrepancies was spotlighted during the ACCC's supermarket inquiry, illustrating a systemic problem within the industry. In response, the Australian government introduced a new mandatory Food and Grocery Code of Conduct, aiming to mitigate the power imbalance between producers and supermarkets. The code, effective in April, introduces significant penalties for non-compliance, signaling a governmental effort to protect farmers against supermarket practices perceived as unfair.

Amid these developments, the Nationals leader and shadow agriculture minister, David Littleproud, called for further action to ensure fair pricing for farmers, suggesting the need for a supermarket commissioner to facilitate confidential reports from farmers about unfair practices. Despite these challenges, supermarket chains Coles and Woolworths assert their commitment to fair dealings with suppliers, emphasizing the factors contributing to retail pricing, including transport, distribution, and operational costs.

Source: ABC News

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