02.Impact on food producers
In the past, if you had a bad year, you could balance it out the next year. We can’t say that now. There’s far more [produce] in Australia than we can actually sell because of all the imports coming in.
- George Anderson*, vegetable farmer
Research by Roy Morgan in 2009 suggests
Aussie shoppers rate local products highly,
with 89% saying it is important the food
they buy is Australian and 82% saying
it’s important this food is packaged in
Australia. Similarly, 83% of CHOICE
members surveyed in 2011 told us that
buying Australian-owned is important
to them.
While Coles and Woolies claim their
buyers only look to overseas markets when
local suppliers are unable to meet demand,
farmers tell a different story.
George Anderson* has been a vegetable
farmer all his life. If you’ve ever purchased
a basket of fresh veggies from Woolworths,
chances are you’ve probably eaten produce
from his Tasmanian farm. If you haven’t,
your chances are fast diminishing. In more
than 30 years of farming, Anderson says
things this year are particularly dire.
Anderson estimates up to 50,000 tonnes
of potatoes and a further 20,000 tonnes of
other vegetables, including carrots and
onions, will go to waste in Tasmania
this year. He says this is due to increasing
numbers of imports arriving on our shores.
“The situation we’re in now is probably
the worst I’ve ever seen,” he told CHOICE.
“In the past, if you had a bad year, you
could balance it out the next year. We can’t
say that now. There’s far more [produce] in
Australia than we can actually sell because
of all the imports coming in.
“Farming in Australia is going
backwards by the week. You’ve got very few
major processors left here, so the product
has to come from overseas. If things keep
going the way they are, people won’t have
a choice when it comes to frozen and
tinned goods because there won’t be
any Australian produce left to buy.”
Woolworths affirms its commitment to
the future of rural Australia on its website,
but our analysis of its processed fruit and
vegetables – the kind you find in tins or in
the freezer section – suggests otherwise.
Of the nine frozen vegetable categories
we looked at, 13 of the 14 Woolworths
private label products were sourced
internationally. Similarly, 19 of their 21
tinned fruit and vegetable products
came from overseas.
While the frozen potato products
from market leaders we examined were
made in Australia, the same can’t be
said for Woolworths branded products.
Frozen chips across both the Select and
Homebrand tiers, as well as Woolies’
potato wedges are processed in the
Netherlands, some 16,000km away.
Coles also sources some frozen and
processed vegetables from overseas, but
this year has moved towards Australian
produce across a range of frozen goods,
including corn, broccoli and peas – a
move Coles says has been well received
by customers.
By invite only
“You can’t expect the big two to be
benevolent organisations, but there
are extremely significant farms in this
country that aren’t even being given the
opportunity to bid for their contracts,”
says William Churchill, spokesperson
for Ausveg, the Australian farming
industry body. “I know some of
the biggest bean growers in this
country weren’t even aware of
[private label] contracts.”
Woolworths says its tender process for
private label goods is by invitation only
– something farmers believe is less than
ideal. “We don’t find out – it is not a public
document,” says Mitch Ball*, a Tasmanian
farmer who supplies Woolworths
with fresh produce year round.
“The challenge for the
government is working out how
they can level the playing field.
We’re as good as producers
anywhere else in the world
yet we are going broke.”
Churchill agrees more
must be done to connect
private label supply
contracts to Australian
growers and processors.
“I’d love to see [tenders]
advertised on the web
so they could be
promoted to farmers.”
Up to standard?
Dr Mark Zirnsak
is the director at
the justice and
international
mission unit of the
Uniting Church of
Australia. In his
capacity as a social justice advocate, he investigates
complaints about food processing
plants overseas.
Woolworths and Coles both have an
audit system in place to ensure overseas
manufacturers maintain workplace
standards in line with the UN’s
International Covenant of Economic,
Social and Cultural Rights, which
calls for just and favourable working
conditions. However, Zirnsak argues
announced visits and lack of
information about sourcing locations
indicate a lack of transparency.
“It’s great when a supermarket
chain has a strong code, but it
needs to be backed by
proper auditing, which
would include
unannounced
inspections and
talking to workers
without
management
being present,
which is currently
not the case with
many companies,”
he says.
* Names changed