Media Release

KAP Federal Leader and Member for Kennedy Bob Katter today called on the Australian Competition and Consumer Commission (ACCC) to investigate reports that Woolworths is engaging in ‘unconscionable conduct’, ‘uncompetitive behaviour’ and ‘excessive use of market power’ through a proposed 50% increase in the already unjustified ‘special charges’ which they impose on banana growers.

Mr Katter said these charges were simply a re-badging of the Jamie Oliver advertising levy which was imposed on farmers last year for supermarket promotion and which caused wide-spread criticism at the time.

“Without any consultation with farmers, Woolworths are reported to be looking into taking a further $10 million per year straight from the pockets of banana farmers,” Mr Katter said today.

“Farmers claim this $10 million is in addition to the $20 million they claim is already taken in fees.

“These alleged fee increases may be unevenly applied across the industry – some farmers may have an increase of 1% while others may be burdened with a 2.5% increase – this uneven application will put farmer against farmer, neighbour against neighbour and mate against mate.

“Surely it would be reasonable to assume that Woolworths have no need for such an increase when they already regularly place a 150% to 200% mark up on the bananas they purchase. For example, bananas are purchased from farmers for around $1.20/kg, yet they are being sold today to Mrs Housewife for $3.50/kg.

“Even blind Freddie could see that this mark-up would cover costs and leave many millions for profits.”

Mr Katter said that the Australian banana industry can only handle so much.

“Already many farms have forked out millions in the past year for new machinery, fencing, alterations to sheds and changes to work practices absolutely necessary to fight Panama Tropical Race 4 disease – a deadly disease that if not managed could destroy the industry.

“These costs have had to be absorbed with the other substantial and ongoing costs of transportation, fertiliser and plant health, packing and sorting and the employment of over 3,000 people.”

Mr Katter concluded that any fee increase by Woolworths would be a massive blow to banana farmers, but that they would be unlikely to speak out themselves.

“Unfortunately you won’t get a whimper from the farmers on this as they would be very stupid people indeed to speak to the media, even a hint of criticism would mean their livelihood was gone.

“That’s what happened to the president of one of the farmers associations in NSW as well as the head of the KAP political party, they were nearly bankrupted for speaking out,” Mr Katter said.

Mr Katter visited a Cairns Woolworths store today and was also astounded to find they were advertising bananas outside the store for $2.90/kg, but charging $3.50/kg within the store.

“Most certainly that is prima facie evidence of a lack of truthfulness in advertising,” Mr Katter said.

His attentions were also turned to the massive price mark ups on the humble potato.

“Now the common whole spud – we’ve got some of the biggest potato growers in Australia on the Atherton Tablelands – and they’re being paid $0.40/kg yet Woolworths is selling them today at $3.98/kg.

“So they’re buying them at 40c and selling them for nearly $4! Something has to be done about this outrageous pricing behaviour.

“And waiting for someone like Aldi, a foreign corporation, to come and rescue us is just sheer idiocy. Get off your fat backsides you Members of Parliament and do something,” Mr Katter said.