ABA Say Supermarkets Take 53% of Consumer Dollar
AUSTRALIA - ABA Chairman, Brad Bellinger has responded strongly to the statement by ACCC Chairman, Mr Graeme Samuel that producer organizations have given him no 'smoking gun' evidence of supermarket bullying.
22 May 2008
2 minute read
He said 'Mr. Samuel is not doing his job, if he is only directing his ACCC Officers to look for an individual handgun with smoke coming from its barrel. The ACCC needs to recognize that farmers' conflict with the supermarkets, originates in a one sided shootout, where a duopoly of Supermarkets have all the weapons of mass discounting to reduce producers' prices, while maximizing their retail margins.
* "The drought is being used as an excuse - this has nothing to do with drought" |
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ABA Chairman, Brad Bellinger
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Mr Bellinger explained, 'ABA has provided ACCC with the US and UK figures on their producers' share of the consumer dollar, which clearly show that Australia's Supermarkets gouge the biggest margins - 53% gross retail margin, as opposed to under 30% in UK and USA. Australian producers are being forced out of business, as they get 25% of the consumer dollar, as opposed to 47% in USA'.
He continued, 'The drought is being used as an excuse - this has nothing to do with drought ' it is blatant rorting of the system by a duopoly retail structure that is unique in the OECD world. The UK Competition Commission has criticised the power of the four major supermarket chains in UK and the UK Government has appointed an Ombudsman to monitor food prices. The US has over 50 supermarket chains and real competition. Australia, alone, has such an uncompetitive closed shop that it is strangling beef producers with the lowest prices received and our consumers with some of the highest beef prices in the Western World.'
Mr Bellinger said, 'Australia is in the dark ages in regulation of the food chain. He pointed out that the US introduced the Stockyard and Packers Act in 1921, to regulate their meat chain. That Act mandates compulsory reporting of sale prices and ensures that producers are paid on the day that they sell their stock. This ensures speedy payment and transparency through the chain, and avoids the long waits and huge interest profits obtained by slow paying retailers in Australia.
Mr Bellinger said, 'I call on Mr Samuel to lift his eyes from his pathetic handgun search and to look at the collateral damage to all Australian producers and consumers caused by the ever increasing firepower of Australia's unique Supermarket duopoly'.
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