On 26 August 2020, the Treasurer announced that the ACCC would commence a three-month inquiry into bargaining power in supply chains for perishable agricultural products in Australia. Horticultural products are included within this inquiry with nursery stock considered a perishable agricultural good.
The ACCC invites all interested parties to make a submission in response to the Terms of Reference by 18 September 2020. The ACCC will also consult directly with key industry representative groups and Greenlife Industry Australia will be making a submission.
The ACCC is seeking information on how the relative bargaining power of farmers, processors and retailers involved in supply chains for perishable agricultural goods affects trading practices which can, in turn, affect the efficient operation of these markets.
They are seeking your views and ideas on possible options to address any issues or concerns raised. Submissions can summarise the issue, identify any harm you believe it causes, outline any suggestions for addressing the issues and give your reasons for this.
If you decide to prepare a submission, you may wish to particularly comment on:
- The relative bargaining power of the suppliers at each level of the domestic supply chain (i.e. farm, processing/manufacturing, retail)
- The concentration of suppliers at each level of the domestic supply chain
- The nature of the relationships between suppliers at each level of the domestic supply chain
- The risks faced by suppliers at each level of the supply chain, the sources of these risks and the options for dealing with them
- Practices and behaviours of buyers of perishable agricultural goods and the effect these have on issues such as:
a. the incentives for growers to invest in farming and supply of these goods, or for processors to invest in manufacturing, product quality and innovation
b. the wholesale prices negotiated
c. the prices or quantities of goods supplied to consumers.
As previously noted, Greenlife Industry Australia is in the process of developing a submission to the ACCC. If you have any industry issues you would like GIA to cover in the submission please contact Peter Vaughan at [email protected]