{"id":20053,"date":"2024-03-11T13:48:54","date_gmt":"2024-03-11T13:48:54","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=20053"},"modified":"2024-03-11T13:49:00","modified_gmt":"2024-03-11T13:49:00","slug":"an-inquiry-into-farmer-remuneration-by-australias-supermarkets","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2024\/03\/11\/an-inquiry-into-farmer-remuneration-by-australias-supermarkets\/","title":{"rendered":"An inquiry into farmer remuneration by Australia\u2019s supermarkets\u00a0"},"content":{"rendered":"\n

A senate inquiry in Australia<\/u><\/a> is taking place on amicable payment arrangement between farmers and grocers. <\/p>\n\n\n\n

While it takes 2 to 3 weeks for farmer remuneration by a local supermarket to happen, a pay rise often takes years.<\/p>\n\n\n\n

On March 11, 2024, producers in Orange, New South Wales, were bracing for a March 12 senate inquiry<\/u><\/a> hearing against supermarkets. Many view the inquiry as a big score for them as it is the only regional hearing of its kind.<\/p>\n\n\n\n

Farmers elsewhere have invited retail customers at the farm gate to repel grocers\u2019 profiteering. Before March 7, \u00a0beef customers were paying farmers a pricey\u00a0A$43\u00a0<\/u><\/a>($28.45) per kg for grass-fed rump to benefit them. Interestingly, supermarkets were selling a kilo of rump at a cheaper AU$33 ($21.84).\u00a0<\/p>\n\n\n\n

Supermarkets in the line of fire include Coles and Woolworths, both of which charge farmers for early payments.<\/p>\n\n\n\n

Rebates<\/strong><\/strong><\/h3>\n\n\n\n

According to a February 13 report by The Guardian, fresh produce suppliers only get early payment through rebates.<\/p>\n\n\n\n

Fast payment processing eats up as much as 4% <\/u><\/a>of the invoice, a surcharge which often puts off such requests.<\/p>\n\n\n\n

A normal payment period, on the other hand, is basically 14 days and at other times as many as 4 months. <\/p>\n\n\n\n

The supermarkets counter that each farmer agrees on a contract with them beforehand, which may include early payment rebates.<\/p>\n\n\n\n

Lengthy Pay Rise<\/strong><\/strong><\/h3>\n\n\n\n

On the flip side is a lengthy pay rise lapse, which with some farmer-suppliers, last happened 15 years ago<\/u><\/a>.<\/p>\n\n\n\n

Producers also state that their grocers often pressure them to contribute to consumer discounts, too.<\/p>\n\n\n\n

This lengthy wait and discount funding has apparently discouraged young people from taking up farming amid an aging rural population.<\/p>\n\n\n\n

How Supermarkets Pay<\/strong><\/strong><\/h3>\n\n\n\n

According to Coles Supermarket, for each discount a buyer gets on a commodity, the given supplier ought to settle partial cost.<\/p>\n\n\n\n

Therefore, whenever supermarkets cut prices for consumers, they do that after farmers have lowered their farm gate prices. <\/p>\n\n\n\n

Given this economic model, supermarket prices sometimes take months before they reflect the actual fall in producer prices. For instance, in September 2023, farmers slashed\u00a0lamb prices<\/u><\/a>\u00a0by 37%, to A$4.70 (US$3.11) per kg but supermarkets only cut retail prices by 10%.<\/p>\n\n\n\n

In situations where farmers get a price raise, it often becomes hard to sustain it past a given season. For example, Australia\u2019s apple prices fall during autumn, which means supermarkets lose if they sustain a producer pay rise indefinitely.<\/p>\n\n\n\n

Ultimately, the farmer remuneration issue in Australia is tied to unavoidable economic factors, especially seasonal supplies.<\/p>\n","protected":false},"excerpt":{"rendered":"

A senate inquiry in Australia is taking place on amicable payment arrangement between farmers and grocers.  While it takes 2 to 3 weeks for farmer remuneration by a local supermarket to happen, a pay rise often takes years. On March 11, 2024, producers in Orange, New South Wales, were bracing for a March 12 senate inquiry hearing against supermarkets….<\/p>\n","protected":false},"author":3,"featured_media":20054,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nAn inquiry into farmer remuneration by Australia\u2019s supermarkets\u00a0 - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2024\/03\/11\/an-inquiry-into-farmer-remuneration-by-australias-supermarkets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"An inquiry into farmer remuneration by Australia\u2019s supermarkets\u00a0 - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"A senate inquiry in Australia is taking place on amicable payment arrangement between farmers and grocers.  While it takes 2 to 3 weeks for farmer remuneration by a local supermarket to happen, a pay rise often takes years. 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