The Australian Retailers Association (ARA) notes the release of Craig Emerson's interim report into the Independent Review of the Food and Grocery Code of Conduct.
ARA CEO Paul Zahra said the crucial role that supermarkets play in supporting domestic suppliers and farmers is integral to the success of the Australian economy and employment - particularly in regional Australia.
"Coles and Woolworths ensure all Aussies have access to quality local produce every single day," Mr Zahra said.
"We support Dr Emerson's push for a fair and competitive market, but it's important to strike a balance that drives innovation while protecting the interests of all parties involved.
"With rising business costs, it's imperative to keep our grocery sector highly competitive and profitable to safeguard local jobs and economic stability.
"Failure in this sector will have far-reaching consequences. If our grocery sector fails, the impact will be felt down the line.
"Our members are already signatories of the voluntary Code of Conduct and understand the importance of fair and transparent business practices.
"Independent mediators will provide both supermarkets and suppliers with a fair and efficient means of resolving issues, ultimately benefiting consumers through improved product availability and affordability.
"The ARA looks forward to engaging with the government on the recommendations outlined in Dr Emerson's interim report to deliver value for both retailers and consumers."
