Farmers had hoped efficiency problems and market breakdown could be pinpointed along the supply chain.
“There is no across-the-board evidence to suggest that retail prices for fresh products are going up by a greater percentage than farm-gate prices,†the report stated.
At the same time the ACCC’s investigation into skyrocketing fertiliser prices concluded prices in Australia reflect international costs of crop boosters.
But when it came to the seemingly disproportionate price between the farm-gate price and packaged groceries on supermarket shelves, the report said this reflected other costs along the supply chain such as processing and advertising.
“At most, roughly one-twentieth of the increases in food prices over the past five years could be directly attributable to the increases in gross margins achieved by the major grocery players,†the report stated.
The NFF has, however, welcomed recommendations made for the horticulture industry, including the introduction of penalties and infringement notices for breaches of the Horticulture Code of Conduct as well as audits to check compliance.
The ACCC also put forward the possibility of changing the code to regulate transactions between growers and retailers, exporters and processors.