THE Federal Government should take a "big stick" to the Coles/Woolworths-dominated retail food sector to help dairy farmers earn more money for their milk.
Queensland Senator Susan McDonald was responding to a Letter of Urgency tabled by Senator Pauline Hanson calling on the Senate to recognise the Government must take action to ensure farmers were paid a fair farm gate price for their milk.
Senator McDonald said the Australian Competition and Consumer Commission could be given powers in the supermarket sector similar to the "big stick" measures being debated for energy retailers.
"I think it's time we give the ACCC the right powers to deal with repetitious and unfair bargaining practices by food retailers," she told the Senate.
"We need to look at the impact of the market power of retailers to prevent unfair bargaining practices in the agri-food supply chain.
"Across the board, unequal bargaining power - from the retailer right through to the processors and farmers - is indirectly affecting farm gate prices."
Senator McDonald said the dairy industry didn't want re-regulation.
"They just want to be paid a fair price for their product," she said.
"Thanks to this Government achieving new markets, dairy farmers export about 36 per cent of their produce which boosts competition in the context of the Woolworths/Coles-dominated supermarket structure.
"But they are still in desperate need of fair domestic prices. Our farmers are the best in the world and we will continue to stand with farmers of all disciplines in their right for fair prices and access to more markets."
