Wyndham’s market gardeners can only dream of fetching $7 a kilogram for broccoli sold in local supermarkets, according to a grower’s advocate.
Most would get far less than the retail price or even the wholesale price, according to Vegetable Growers’ Association of Victoria president David Wallace.
It might be a short drive from Werribee South to the local supermarkets, but the price of the produce was vastly different, he said.
Mr Wallace said growers supplying Coles and Woolworths supermarkets directly had confidential prices set which may be even lower than other wholesale prices.
He said the industry was awaiting the release of an Australian Competition and Consumer Commission inquiry into the treatment of suppliers by major supermarkets, which ACCC chairman Rod Sims said had been delayed until around March because of its complexities.
A Weekly survey of prices of five vegetables at Werribee plaza’s Coles and Woolworths supermarkets found that most were substantially higher than the wholesale prices.
Tony Migro, market reporting officer for Fresh State – which represents vegetable traders – said because of their buying power, supermarkets negotiated cheaper prices than wholesale. He said recent prices for iceberg lettuce at the Melbourne Wholesale Fruit and Vegetable Market in Footscray Road were between $1.25 and $1.50. Celery was $1.25, cabbage $1.50 to $2, broccoli $3 a kilogram and cauliflower $2.50 to $2.70.
“These are the average selling prices in the wholesale market, but obviously big buyers have got purchasing power and get better deals,” he said.
Earlier this month, Wesfarmers chief executive Richard Goyder urged the ACCC not to interfere with the supermarket sector.
He told shareholders he was perplexed when Wesfarmers’ Coles was blamed for challenges in the food sector.
‘‘The farming and food industries do have challenges today, as they have had for many years. They are not helped by our strong currency, as well as productivity issues and cumbersome regulations. But, it is just too easy, too simplistic, to blame the supermarkets for a lot of these difficulties.’’
Mr Goyder said suppliers, shoppers, staff and investors had benefited from the resuscitation of Coles since Wesfarmers took over in 2007.
