Media Releases
Coles’ new pricing strategy for fresh fruit and vegetables sets off alarm bells
Release Date: January 31, 2012
The Adelaide Produce Market has sounded the alarm bells today over Coles’ announcement that it will discount some fruit and vegetables lines by up to 50%, in what the Market describes as a cruel grab for market share at the detrimental expense of smaller local growers and the South Australian independent retail sector.
“While cheaper prices are good for consumers in the short term during periods of high supply like we are experiencing at the moment with some lines, this is going to have devastating effects in the term long and could very well spell the end of local growers supplying local greengrocers across South Australia,” Adelaide Produce Market CEO Angelo Demasi said.
“Growers can’t produce and retailers can’t compete on these low prices, so you will ultimately end up with fewer retailers and fewer farmers in the long run, and that’s when things start to work against consumer interests”, Mr Demasi said.
The Adelaide Produce Market is South Australia's centre for the distribution and marketing of fresh fruit and vegetables. The commercial market allows for the exchange and sale of 185,000 tonnes of fresh fruit and vegetables between growers, wholesalers, supermarkets, greengrocers, food processors, exporters and providores with an estimated wholesale value of $600 million. The South Australian horticulture industry consists of 3,500 businesses and employs over 37,000 people.
“At some point in time, participants along the fresh produce supply chain will start to realise they can get a greater return by putting their money in the bank. When this happens, there will be a greater likelihood of fruit and vegetables being sourced from overseas due to a lack of local supply. When it comes to the viability of the local fresh produce industry, Coles is playing with fire,” Mr Demasi said.
Mr Demasi wants growers and the entire supply chain to receive a fair return for their produce, congratulated Woolworths on maintaining its current pricing structure and calls on the Australian Competition and Consumer Commission to investigate.
Media enquiries:
Julian Carbone, Marketing & Business Development Manager
8349 4493 or 0408 877 797
