Farmers’ Federation calls for inquiry into price irregularity

The National Farmers’ Federation is calling for an investigation into the grain supply chain after a report found a price irregularity that could means billions of dollars in losses to Australian farmers.

The federation’s chief executive officer Tony Mahar said the federal government needed to respond immediately by instigating an inquiry through the Australian Competition and Consumer Commission or similar following a report by GrainGrowers.

“These are mind boggling losses that could run into the billions for wheat alone,” he said.

“At a time of increasing market concentration across agricultural supply chains, Australian farmers need certainty that no one is using this market power to increase profit at the expense of family farms.

“Given the impact this could have on farmers and the supply chain, nothing short of an in-depth investigation will do.”

The anomalies have been found in the 2021-22 grain and oilseed market season.

“We need to understand and address what’s happening to prevent further economic fallout and impacts on farmers’ bottom line,” Mr Mahar said.

“I hate to think what could happen to farming families if this isn’t addressed swiftly.”

The NFF has echoed GrainGrowers call for the investigation to encompass the entire grains supply chain, from farm gate through to export and domestic channels including identifying bottlenecks and other barriers for trade participants.

“Our goal to become a $100 billion industry by 2030 strongly relies on our grains sector, so we need to pull every lever to investigate and identify ways the industry can grow to benefit our farmers, our economy and our trading partners,” Mr Mahar said.

GrainGrowers chief executive officer Shona Gawel said the industry needed the decision to progress the issue.

“Growers have been raising the issue for some time, and the report provides quantitative evidence supporting the need for government to perform an in-depth investigation,” she said.

“Given the issue’s importance, we believe it is appropriate for the government to decide and commence what it considers to be the most appropriate course of action to address the identified concerns.”

GrainGrowers has outlined a range of options for the government to consider, including a Senate Inquiry, an Australian Competition and Consumer Commission pricing inquiry, an independent review, or a departmental review by the Department of Agriculture, Fisheries and Forestry.

Ms Gawel said whichever approach is adopted, it is critical that it can gather the necessary information and is meaningful for all industry participants and government.