As NSW families continue to feel cost-of-living pressures, the Federal Government announcement that there will be an Australian Competition and Consumer Commission inquiry into supermarket price gouging could be light at the end of the tunnel.
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With farmers receiving less for their produce, there is a feeling that these lower prices are not being passed on to the consumer and that it is nothing new.
The last ACCC inquiry into the matter was held in 2008 and leader of The Nationals David Littleproud feels a new inquiry is well overdue.
Mr Littleproud welcomed the inquiry announcement, but claimed the Government was shamed into calling it and has been calling for an investigation on the price disparity between farmgate and supermarket meat and fresh produce since November 2023.
"Labor could have started the ACCC investigation before Christmas but didn't understand the scale nor severity of the cost-of-living crisis," Mr Littleproud said.
"The ACCC has the powers to properly investigate as part of a dedicated inquiry to ensure fairness for farmers and consumers and it's only because they've been shamed into action that the government has acted.
"Under section 95, the Treasurer has the legislated power to direct the ACCC and give it strong powers to compel witnesses and recommend harsher penalties.
"Labor was simply too slow to take action and in fact said that the Grocery Code of Conduct Review was their solution."
Mr Littleproud said he wrote to assistant Minister for Competition Dr Andrew Leigh in December, 2022, requesting the Food and Grocery Code review be bought forward from October last year.
Mr Leigh rejected the request in a letter, writing "it remains appropriate the review of the remaining provisions takes place in October 2023".
"The Nationals tried to bring forward the much-needed review more than a year ago, but we were ignored," Mr Littleproud said.
"It was obvious there was a cost-of-living crisis in 2022, when I requested that Mr Leigh commence the Food and Grocery Code of Conduct.
"The review could have been done and dusted, with decisions already implemented, to help farmers and families and try to stop them from being ripped off over Christmas last year."
NSW Farmers supports the inquiry, saying "fair prices for consumers and farmers remain nowhere in sight".
President Xavier Martin believes with grocery costs surging, consumers and their families are struggling to put food on the table.
"Yet farmers are still receiving the same dysfunctional prices for their produce as they did when input costs were far lower," Mr Martin said.
"It has become increasingly clear that margins are not being passed through the supply chain in a fair and equitable manner, and it is farmers and families who are footing the bill.
"Farmers are being offered increasingly lower prices that often don't cover their cost of production, with little justification and a 'take it or leave it' attitude from supermarkets."
Mr Martin said consumers were also suffering with the average weekly cost of groceries significantly climbing.
"Consumer research shows the average weekly cost of groceries increased by $37 between February 2022 and February 2023," Mr Martin said.
As part of Sydney's Australia Day celebrations, Casino meat subscription service Our Cow held an event on the harbour shore to help raise city awareness of the disparity between consumers prices and the money farmers receive.
Co-founder of Our Cow, Bianca Tarrant said telling the people of Sydney that there are other ways that they can buy food, not just through the supermarkets, was an important part of the event.
"You can buy directly if you choose to, and know that the money that you are spending is going directly back to a farming family," Ms Tarrant said.
"As a company passionate about supporting Aussie farmers, we're eager to educate people that there are other ways to get your meat and produce whilst still ensuring farmers are compensated fairly.
"Connecting with real farmers, face to face, is a great start."
Ms Tarrant said the event was timely with the announcement of the ACCC inquiry.
"What the supermarkets charge, compared to what they pay the farmers, is too wide of a gap. We need to look after the people who are producing our food," Ms Tarrant said.
"If it's not financially sustainable to run a farm they will be driven out of business.
"It's expensive to produce food, especially sustainable food, and we can't control the end price because of current practices by the big supermarkets."
