Call for national food policy & supermarket ombudsman
CHOICE says implications of the supermarkets’ milk pricing battle should be seen in the wider frame of competition issues in the grocery sector and the need for a National Food Policy.
The consumer group, in a submission to the Senate Economics Committee Inquiry into the milk discount issue, says discounted prices in the short-term may have negative consequences further down the track.
Of clear concern is whether the $1 a litre dairy discounts are a sign of healthy competition or of excessive market concentration.
Consumers do not 'win' if heavy discounting in the short term has the effect of reducing product choice or undermining food security in the medium or long term.
CHOICE believes that the milk price debate highlights the obvious lack of perspective and understanding surrounding the potential impacts of the growth in
major supermarket generic brands and associated issues around future food prices and food security.
As such the consumer group argues for a whole-of-government approach to a National Food Policy that tackles information and regulatory gaps.
“We believe a more centralised approach is needed to ensure the many and varied players along the food supply chain operate in a coordinated and strategic manner," says CHOICE director of campaigns Christopher Zinn.
"This would mean decisions affecting the future of Australia's food industry are coherent and consistent.”
CHOICE also wants to see a supermarket ombudsman to tackle competition and fairness issues across the grocery sector, effectively sitting within the ACCC.
The role would involve promoting and protecting competition amongst supermarkets and would not necessarily require the creation of any new laws, just better enforcement of existing legislation.
“The Ombudsman would provide much needed leadership in reforming the supermarket sector. This is critically important in an industry where the major
retail players have well-funded capacities to engage in lobbying and influencing of governments and other regulators,” said Zinn.
Due to the complexity of issues involved in competition throughout the supermarket sector, CHOICE believes a Supermarket Ombudsman would be well placed to consider all pieces of the ‘puzzle’ along the food value chain, and would be able to direct research priorities under a National Food Policy.
Note to editors:
- CHOICE is a member of the Federal Government's National Food Policy
Working Group.
- To access a copy of CHOICE’s submission to the Senate Economics Committee Inquiry on The impacts of supermarket price decisions on the dairy industry, go to www.choice.com.au/milkprices
Media contact:
- Christopher Zinn, CHOICE, Director Campaigns and Communications: 0425296 442
- Ingrid Just, CHOICE, Spokesperson: 0430 172 669