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Market power in the Australian food system | 778.08 KB |
Supermarkets have an increasing role in the development of the Australian agricultural sector. An escalation in market share for Coles and Woolworths has created a challenging environment for many Australian farmers and suppliers. It has led to concerns that the current imbalance in market power, favouring the major supermarkets, is detrimental to Australia’s agricultural industry.
The major challenge is to ensure that an appropriate level of protection exists to allow the continued operation of small and medium-sized agribusinesses and retailers, to promote competition in the agricultural sector.
If it is not restrained, this power play may jeopardise the stability of Australia’s food system and also have wider food security implications.
Key points