A SENATE inquiry into the pricing practices of supermarkets has recommended stronger laws to crack down on price gouging and powers to make companies divest parts of the business as punishment.

The inquiry has also recommended a more well-resourced Australian Competition and Consumer Commission and a mandatory code of conduct.

The senate inquiry is one of at least four inquiries currently looking into pricing practices of supermarkets, who have been facing criticism about their role in the current high inflation rate.

Several beef industry stakeholders made submissions to the inquiry, with some calling for more transparency into the pricing structures of supermarket meat and others defending the supermarkets for their long-held commercial relationships with producers.

National Farmers’ Federation president David Jochinke welcomed the report’s findings.

“We’ve long argued that the Australian food and grocery supply chain lacks adequate competition. We see supermarkets and retailers using their market power to harm farmers through lower prices, unfair risk burden and supply uncertainty. This places significant pressure on small, family-run businesses,” Mr Jochinke said.

“Today’s report is another piece of evidence to support the challenges being faced by thousands of Australian farmers, in particular those supplying perishable goods.

“The NFF is working through the extensive report but welcomes a number of the Committee’s recommendations which closely align with calls from the sector. These include making the Food and Grocery Code of Conduct mandatory, extending the Code to cover major retailers of ‘Greenlife’ products, and putting in place significant penalties for breaches.

“Further, we strongly welcome the report’s recommendations for continued reform of Australia’s mergers framework, and an increase in resourcing and strengthening of powers of the Australian Competition and Consumer Commission.

“These recommendations build on previous reports including the ACCC Perishable Agricultural Goods Inquiry in 2020, creating a clear evidence base for these recommendations to be urgently actioned by Government.

“Further, we expect that the other supermarket sector inquiries currently being undertaken, including the Review of the Food and Grocery Code of Conduct, and the ACCC’s Supermarkets Inquiry 2024-25 will only add further weight to the argument that competition settings need strengthening.

“The NFF will read through the report in detail and looks forward to working with all members of Parliament to ensure we achieve better outcomes for Australian growers.”