Farmers and producers have warned of a mass exodus from the agriculture industry because of low prices for goods paid for by major supermarkets.
A Senate committee examining supermarket prices has held hearings on Tuesday in Orange in NSW's Central West, with farmers laying bare their struggles in dealing with the duopoly of Coles and Woolworths.
Orchard owner Guy Gaeta, who grows apples and cherries, said major supermarkets had set prices too low for the purchase of produce, leaving an unviable future for growers.
"Every year on the news, Woolies is saying they pay people millions of dollars, but yet they put on us whatever they want," he told the inquiry
"At the rate we're going ... there won't be any family farms left within five to 10 years, or you're going to have corporate farms and they're going to be as good as citizens to the consumer as what they are now, and it is scary.
"If you don't have family farms, you're going to lose your food security."
The Senate inquiry was set up following claims of price gouging by major supermarkets to consumers.
But primary producers have warned the market power of supermarkets have meant they can charge low prices for the purchase of goods.
Fellow orchard farmer Ian Pearce told the committee the prices for goods set by supermarkets had largely stayed unchanged over several years, despite labour costs increasing.
"In 2011, we got $2.37 a kilo and $2.55 a kilo. Last year in September, similar timing, $2.60 and $2.57 a kilo," he said.
"We're very dependent with apples on the domestic market ... we're caught in a cost price squeeze."
Mr Pearce took aim at the market share of Coles and Woolworths, saying there was an imbalance in the industry.
"Even though my wife and I have two sons, who in their early 20s have a passion for agriculture, I really do not see a future for them doing what we currently do," he said.
"We're at the point where we've got to make some very serious business decisions."
NSW Farmers Vice President Rebecca Reardon.
Earlier, NSW Farmers Vice President Rebecca Reardon echoed these concerns, telling the Senate Inquiry Australia would be unable to feed itself and farmers would be driven out of business unless radical action is taken to reform the supermarket retail sector.
“It’s farmers – not the supermarkets – who are the real fresh food people, and if the market dominance of these big two supermarkets means farmers struggle to make a living, we could very well see a future where Australia can no longer feed itself,” Mrs Reardon said.
“This would be terrible not only for Australian farmers and for families right across the country, but also for the tens of millions of people overseas who rely on the food we grow and export.
“We can’t afford to miss the opportunity to solve this problem that has been in the ‘too hard’ basket for too long.”
Six recommendations to the inquiry for reforming the supermarket sector were put forward by NSW Farmers ahead of the hearing.
“We have proposed a constructive, considered approach to overhauling the sector, starting with making the Food and Grocery Code of Conduct mandatory and more enforceable with real penalties for its breach,” Mrs Reardon said.
“Increasing price transparency, developing options to add new supermarket competitors, and introducing divestiture powers to correct gross market power imbalances are just some of the other recommendations we have put forward.
“The gross profit margins of supermarkets are only continuing to increase, so there must be controls in place to not only identify any unfair pricing practices, but actually bring these to account.”
As the inquiry continued, Mrs Reardon said significant changes to competition law and policy were essential if effective outcomes for farmers and consumers were to be secured.
“In recent times, we’ve seen governments in Canada and New Zealand drive significant competition reform within their retail sectors – and we must do the same if we want healthy, home-grown food on Australian dinner tables,” Mrs Reardon said.
“Unless there is real and complex reform to how we govern these supermarket superpowers, we will continue to lose farmers and Australia will one day wake up to discover it can no longer feed itself.”
Outside the hearing, Independent MP Andrew Gee and Queensland MP Bob Katter held a press conference accusing the major parties of inaction on supermarket pricing.
The MPs stood alongside staffers dressed in inflatable pig costumes holding a banner saying: "Stop supermarket hogs and National Party porkies!"
Nationals Senator Ross Cadell watched on, accusing Mr Gee, who sensationally quit the party in late 2022, of being a "stunt man".
"You did nothing when you were a Nat because all you're about is the stunts," Senator Cadell said.
Mr Katter then accused Senator Cadell of playing politics.
The exchange became heated when Mr Katter approached Senator Cadell and told him to stop interrupting.
"Now, shut up," Mr Katter said, pointing his finger at Senator Cadell.
Mr Gee said the independents on the crossbench and Mr Katter would introduce a bill to cut back the power of the major supermarkets and limit their profits on fruit and vegetables.