Competition in Australia

Complaints about shrinking margins for growers are not unique to the U.S. The USDA FAS has published a report retail competition in Australia. Find it here. From the report about a study from the The Australian Competition and Consumer Commission:



During the inquiry, one significant concern raised was whether the gap between farm gate and retail prices for groceries has been widening in recent times, such that farmers and suppliers are getting less, while retailers are getting more. Concerns were also raised about the long-term future of small family-run independent supermarket operators and smaller retailers such as butchers, bakeries and greengrocers and their ability to compete with the major supermarket chains (Coles and Woolworths). The ACCC report focuses on competition in the Australian grocery sector – specifically whether a lack of competition is an explanation for the concerns identified above. The report analyses the extent to which competition (or a lack of it) has contributed to increased grocery prices. The supply chain and bargaining power of Coles, Woolworths and Metcash (the major wholesaler to the independent sector) are given detailed attention. The competitive position of independent retailers also comes under close scrutiny, with an analysis of the factors that may make it difficult for independent grocery retailers to compete aggressively with Coles and Woolworths on price. The report concentrates on basic staple products essential to households. A full copy of the inquiry report is available on the ACCC website here.