Independent inquiry into fair treatment of domestic produce farmers launched by Australia Competition and Consumer Commission

Launched by the Australian Competition and Consumer Commission, the inquiry will examine the treatment of farmers in the marketplace, including the ongoing debate around the cost of milk and fresh foods such as meat, eggs, seafood, fruit and vegetables.

Minister for Agriculture and Deputy Leader of the Nationals David Littleproud said the government secured the three-month ACCC independent inquiry, with a critical focus on the new Dairy Code being extended across the entire domestic supply chain to include retailers.

"Australian farmers take considerable risks and work incredibly hard to grow the fresh and affordable food we all take for granted," he said.

"But there are concerns that once farm produce is harvested or processed and sent off to market, producers have little bargaining power and are at the mercy of the powerful supermarkets when it comes to the price they are paid."

Riverina Fresh's Rob Collier said news of the inquiry was welcome for the region, which has numerous producers across all industries.

"We're supportive of anything that brings greater transparency and better outcomes for farmers," he said.

"This is a good initiative in that light, but having said that, the proof is in the pudding so it will be a matter of waiting and seeing what's to come of the inquiry, and if that transparency is achieved."

Minister Littleproud said the inquiry will allow for a wide range of Australian farmers across all food producing sectors to submit evidence and share their concerns.

"Importantly, the ACCC has guaranteed that the Inquiry will accept confidential submissions so that farmers can provide evidence of harmful practices without the fear of punishment and retribution by the major supermarkets," he said.

"We want to ensure we have the right policies in place - but to do that, we need the industry to speak up and tell us what's really going on."

NSW Farmers President James Jackson said the inquiry is a promising development for farmers, who have been raising the issue of supply chain power inequities for some time now.

"The major supermarkets' pricing wars on milk and cheese have caused irreparable damage to dairy farmers," he said.

"Supermarkets have squeezed the margins of processors and farmers for short-term benefits to the consumer.

"Quite simply, competition policy has failed farmers and has made supply chains less sustainable. It has allowed the supermarkets to extract unreasonable margins, forcing farmers to operate below the cost of production."

Mr Jackson said such detrimental impacts are not isolated to the dairy industry and similar problems have been identified in other supply chains, such as poultry meat and horticulture.

"The supply chain inequities plaguing poultry meat farmers have only come to light recently," he said.

"The retail price of chicken has barely lifted over the past decade, despite prices on other proteins rising."

The ACCC will commence its Inquiry on Monday and will report to the Government by 30 November.