The federal government is launching workshops with perishable agricultural goods industries, with the aim of improving market transparency across supply chains.
The workshops are designed to help industries identify market transparency issues and then co-design tools and processes to address them
Minister for Agriculture and Northern Australia David Littleproud said the program is another way the government is helping the agricultural industry achieve its goal of $100 billion by 2030.
“Farmers have been telling me for some time about market power imbalances that exist and the misuse, and at times, abuse of bargaining power by some sections of the fresh food supply chain,” Minister Littleproud said.
“That’s why the government directed the Australian Competition and Consumer Commission (ACCC) to undertake an inquiry into the domestic fresh food supply chain,” he said.
As part of this review, he continued the ACCC found that farmers often have the least amount of price and market information in the fresh food supply chain.
“Addressing this information asymmetry is critical to ensuring they get a fair go and make informed business decisions,” he said.
The chicken meat, dairy, horticulture, pork, red meat, seafood, and wine grapes sectors will all be participating.
Assistant Minister for Forestry and Fisheries Jonno Duniam said improving market transparency was essential to strengthening market confidence.
“I am pleased to see the seafood industry kicking off this process,” Assistant Minister Duniam said.
“We want to ensure those who work in this industry, as well as all the perishable agriculture goods industries, are armed with the knowledge they need to overcome bargaining power imbalances,” he said.
Following the workshops, a grants program will then support industries to develop and implement tailored mechanisms to improve price and market transparency.
“Strong and resilient supply chains where everyone is treated fairly and pays their share are essential to achieving the Ag2030 target,” Minister Littleproud said.
The workshops are part of the Australian Government’s $5.4 million investment to improve market transparency across perishable agricultural goods supply chains.
Source: Minister for Agriculture and Northern Australia, the Hon David Littleproud MP
Assistant Minister for Forestry and Fisheries and Assistant Minister for Industry Development, Senator the Hon Jonno Duniam