Australian farmers have today welcomed the Federal Government's announcement it will review the potential to extend the regulation of unfair trading practices to small businesses.
National Farmers' Federation President David Jochinke said such a review was welcome to help address power imbalances within supply chains.
"Farmers have long identified the need to address unfair business and trading practices. The NFF's Competition Policy recommends strengthening relevant regulation above and beyond existing provisions such as unfair contract terms."
Mr Jochinke outlined that the numerous reviews into supply chain competition over the past 18 months had demonstrated the need for action.
"A prevailing theme emerging from these reviews is business with market power may not breach the 'letter of the law', but are clearly engaging in practices that undermine the spirit of free and open competition.
"We have heard examples of harmful practices including unilateral variations of supply terms that can significantly impact farmers' incomes and commercial retribution against suppliers who seek a price increase or who raise concerns about the conduct of supply chain participants.
"The NFF and its members are hopeful the review will drive tangible changes by strengthening existing regulation to support fairer competition for farmers and small business."
The NFF membership backs sensible, practical policy proposals to tackle the competition challenges across the supply chain.
"From making Food and Grocery Code of Conduct mandatory to enforcing maximum penalties for breaches and reforming the merger framework, it is clear changes have been needed to promote free and open competition," Mr Jochinke said.
"The NFF and its members call on all sides of politics to support this review to give farmers and small businesses another 'tool in the toolbox' to compete on an open and level playing field."
