ADPF Submission: ACCC Supermarket Inquiry Interim Report

ADPF has responded to the ACCC’s Supermarket Inquiry Interim Report, raising concerns about the significant bargaining power held by major supermarkets. This imbalance risks undermining the competitiveness and sustainability of both local and international dairy processors.

In our submission, we commend the ACCC for focusing on the distribution of risk and reward along the dairy supply chain. However, we believe further action is needed to address the unfair allocation of risk, which affects the viability of our sector.

To mitigate these issues, we have called for a review of the protections within the Food and Grocery Code of Conduct and highlighted the challenges arising from the increasing vertical integration and horizontal expansion of supermarket chains.

These trends force dairy processors into interactions with supermarket-controlled entities at multiple stages of the supply chain, compounding competition-related difficulties.

Read our full submission.