The NSW Farmers Association has questioned the alignment of fruit and vegetable prices with the recent inflation trends. Despite the Australian Bureau of Statistics reporting a decline in inflation to a three-year low, fruit and vegetable prices increased by 6.3% in 2024. Jo Brighenti-Barnard, chair of the association's horticulture committee, highlighted the lack of price transparency in major supermarkets, suggesting they may leverage market power and other factors such as shortages and seasonality to maximize profits.
Brighenti-Barnard called for expanded powers for the ACCC, which is set to release findings from its inquiry into supermarket practices next month. The ACCC's interim report identified various international and domestic factors affecting grocery prices, including transport, fuel, and wage costs. It noted that the fruit and vegetable market is less responsive to inflation due to supply factors. For instance, when the CPI rose at the end of 2023, fruit and vegetable prices were lower.
A Coles spokesperson stated that the chain aims to balance customer value with fair returns for farmers, noting that prices are influenced by supply-demand dynamics, seasonal variations, and supply chain disruptions. Aldi also emphasized its commitment to low prices, acknowledging that fruit and vegetable pricing fluctuates with various factors. Woolworths mentioned that market price declines are reflected in in-store prices, driven by factors like weather, seasonality, supply, and demand.
Source: 9 News