MURRAYLANDS growers are scared to speak up about the fruit and vegetable price war between supermarket giants Coles and Woolworths, according to a peak farming body.
The two supermarkets last week announced a price war campaign, targeting heavy discounts on fresh fruits and vegetables.
The country’s peak vegetable grower peak body, AUSVEG, has been vocal in opposition of the move.
AUSVEG communications and public affairs manager William Churchill said very few growers, such as those in the Murraylands region, were willing to talk about the issue.
“Most growers are understandingly unwilling to “bag” their customers, particularly when their customers represent 80 per cent of the retail market,” he said.
Mr Churchill said at the moment the current glut from a good season in the vegetable industry meant many farmers could make a return on the price currently paid for produce.
But Mr Churchill said AUSVEG was concerned about the price war continuing, when farmers could no longer sustain selling an abundant quantity of produce.
“To what end are we going to see it go on for?” he said.
“It will do the same thing as what happened to the milk industry.”
Monteith onion grower Gordon McKerlie sells 90 per cent of his produce to Woolworths, and while he had “no bones with them at the moment”, he predicted a glut over the coming months would drop prices.
“The prices are going to drop regardless because of an oversupply of onions,” Mr McKerlie said.
He said a good European growing season and the strong Australian dollar had dropped exports, which would force an oversupply of onions into the domestic market until April.
“It will make a difference, the price will fluctuate,” he said.
Mr McKerlie said he has had a good growing season and is about halfway through harvest, which he expects to finish at the end of March.
He said a bigger concern for producers was the cost of production and the many government rules and regulations compared to their overseas counteparts.
Mr McKerlie said like all farming, there were good years and not so good years, but he had to remain positive.
“Last year was an extremely good year, overall we’re doing alright.”
LOCAL BUSINESS PICKS OTHER OPTIONS
TOBALONG Tomatoes, at White Sands, is one local grower who does not sell produce to the two supermarket giants, Coles and Woolworths.
Owner Graham Coventry said they preferred to sell to independent grocers and at the Murray Bridge Farmers Market, which runs every Saturday.
He said several contracts had been cancelled because of the aggresive pricing system, forcing the company to throw out trays of perfect produce.
“So what are we left to do with the product other than throw it out?” Mr Coventry asked.
He said while their tomatoes were sold at a higher price than the supermarkets offered, they had had no objections from customers so far.
“It’s about getting fresh produce at a fair price to the grower, and people that support the farmers markets are aware of that,” he said.
Mr Coventry said Coles and Woolworths were clever at marketing, but unfortunately their manipulation of the market had serious effects on growers.
He said the current market conditions gave rise to consider diversifying their business, such as making sauces, relish and sun-dried tomatoes so any excess would not be wasted.
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