FED:Price war could devastate farmers: union

AAP General News (Australia)
02-01-2012
FED:Price war could devastate farmers: union

SYDNEY, Feb 1 AAP - The latest supermarket price war could devastate the farming industry
in the same way Australia's manufacturing sector has been savaged, a union has warned.

Coles on Tuesday began cutting the shelf price of some of its fruit and vegetables
by up to 50 per cent, claiming it would help farmers shift excess stock.

This has sparked fears of a fresh food price war with its rival Woolworths, which could
lead to local producers being driven out of business.

"Too many manufacturing jobs have already been lost across Australia due to the predatory
practices of the supermarket duopoly," CFMEU national secretary Michael O'Connor said
in a statement on Wednesday.

"It is not in the national interest to have this extraordinary market concentration
enjoyed by the duopoly impacting on our farmers now too."

Mr O'Connor said Australia's manufacturing base was hurt when the supermarket chains
ramped up production of their own home brand products last year.

This effectively priced local suppliers out of the market, constrained choice for consumers
and drove jobs offshore.

Mr O'Connor has backed calls from the Australian Greens and Independent Senator Nick
Xenophon for the price war to be examined by the competition watchdog to determine whether
it is impacting on farmers.

Mr O'Connor said the situation could require government intervention to ensure it did
not spiral out of control.

"Woolworths announced a net profit of $2.12 billion last financial year and Coles profit
was $1.6 billion," he said.

"If primary producers and manufacturers are to be treated fairly ... then the government
needs to be doing more than just the ACCC inquiry into this out of control duopoly.

"It's time these companies exercised more social responsibility for Australian jobs
and families."

AAP af/tr/jlw

KEYWORD: COLES CFMEU

� 2012 AAP Information Services Pty Limited (AAP) or its Licensors.