The Queensland Government has announced will trial a farm gate price monitoring scheme led by industry to establish industry pricing standards.
The scheme will work across industry to collate and analyse farm financial performance, historical data and weekly wholesale and retail pricing data to monitor trends across the top 20 products.
The information, in tandem with contract negotiation and cost of production training, will give farmers the information and skills to effectively negotiate better deals – resulting in fairer returns, the Queensland Govenment says.
Workshops will be held in each major growing region to upskill growers in the art of negotiation, ensuring they are confident in their dealings with buyers and retailers.
The government will also seek to develop a production cost best practice model for Queenslander growers. This will help farmers understand their profitability and risk.
It comes as the Queensland Supermarket Pricing Select Committee (Parliamentary Inquiry) extends the submission period until Friday, 19 April.
The Committee intends to shine a light on price transparency, from farm gate to plate, and examine the cause and effect of increased supermarket prices.
Queenslanders are encouraged to make a submission via the Queensland Parliament Website.
“I shared a story earlier this year of a farmer selling watermelons by the road for $10 each, because he couldn’t afford to sell it for the $4 he was offered by the supermarkets,” Premier Steven Miles said.
“It’s a story that is all too familiar for those in the industry and something growers tell me is happening more and more often.
“My government will work with industry to capture and analyse the cost of products from the farm gate to plate, to shine a light on price transparency and support producers.
“Workshops will be delivered to upskill Queensland growers so they understand their true cost of production and are better positioned to negotiate with buyers and retailers.
“I want farmers to be equipped with the information and training the need to back themselves and advocate for their product.”
Queensland Fruit and Vegetable Growers CEO Rachel Chambers said Gearing Up Growers was about levelling the playing field.
“It is a collective, state-wide effort which aims to empower Queensland growers to be the most equipped negotiators in Australia.
“We know Queensland’s produce holds more value than what is currently being paid and we are going to do all we can to support our growers to achieve a fair return at market.”
The Queensland Goovernment said ABS data shows Australians are consuming less fresh fruit, vegetables, meat and dairy. Instead, favouring cheaper, packaged foods like cereals and convenience foods.
Source: Queensland Govt
This reminds me of another industry where sellers are expected to make available their financial statements over multiple years to “prospective” buyers, who walk into the selling agent’s office, without having to do anything whatsoever to demonstrate that firstly they have access to the finance required, and secondly that they are a bona fide purchaser.
Some of the proposal, such as assisting farmers to “understand their true cost of production”, and “be better equipped to negotiate”, appears well intended, and well done, but what of the other parties?
Would, for instance, the state government advocate that victims of school bullying be taught boxing so that they could be “better equipped” to deal with the bullies? One would hope not, and that any response would be specifically aimed at the cause of the problem, not at any symptoms or consequences.
So, in light of that comparison, what will the QSPS Committee demand of the major supermarket chains, and other buyers and retailers generally? How will their “business as usual” behaviour have to be altered in order to demonstrate some equivalence of compromise?