“This is about getting a fair go for families and a fair go for farmers,” a joint statement by Treasurer Jim Chalmers, agriculture minister Murray Watt and competition minister Andrew Leigh said.

 

The federal government will prioritise passing laws to make the code mandatory, it said in a separate statement.

 

The review is one of six government inquiries into the country’s supermarket sector which commentators say is one of the most concentrated industries in the world. Woolworths and Coles, the No. 1 and No. 2 grocers, together sell two-thirds of all Australian groceries.

 

Representatives for Woolworths and Coles said their companies would consider the report’s recommendations and the government’s response and were committed to supporting a sustainable grocery sector.

 

An ALDI Australia spokesperson said the company supported making the code of conduct mandatory and was reviewing the final recommendations.

 

A Metcash spokesperson said the company was committed to the code of conduct and would keep working with suppliers to be their partner of choice.

 

The National Farmers Federation said the changes would make it easier for grocery suppliers to speak up when they believed a large customer was misusing its market power to drive wholesale prices lower.

 

“These changes should finally give the code the clout it needs to protect farmers,” the federation’s acting CEO, Charlie Thomas, said.

 

First Published: Jun 24 2024 | 10:09 AM IST