Coles, Woolworths supply chain tactic driving small farms out, producer says
Small-scale Australian farmers are expressing concern as major supermarkets Coles and Woolworths centralize supply chains to cut costs. Producers argue this shift leaves family-run farms vulnerable and reduces market diversity.
Why it matters
The consolidation of supermarket supply chains raises significant concerns regarding the viability of small-scale agriculture and the market power of major retail duopolies.
When middlemen or wholesalers are involved in trade agreements with major supermarkets, small producers have "no power", says one grower. ( ABC News: Hamed Akrami )
A small-scale banana farmer who has had his agreement to supply Coles ended due to the supermarket simplifying its supply chain says the move signals the end of small-scale farms across the country.
Industry experts have claimed Coles and Woolworths are centralising their supply chains in a bid to cut costs.
Some experts worry producers will become more vulnerable if supermarkets continue to do so.
Link copied Share Share article After 30 years of selling bananas to Coles, New South Wales farmer Amrit Singh believes the supermarket's decision to stop buying his produce signals a possible end for small, family-run farms like his.
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