Feedback required for Parliamentary Inquiry into Primary Producers

Jul 10, 2017

Grain producers are being encouraged to provide further feedback to a parliamentary inquiry held by the Economic and Finance Committee, following the publication of an Issues Paper.
As one of South Australia’s Parliamentary Standing Committees, the committee began a review in November 2016 into organisational and market structures that prevent primary producers and other people in the food processing industry from receiving a fair deal.
The Committee’s Terms of Reference outline that it will "inquire into and report on options for enhancing and supporting Australian primary producers in competitively supplying to retailers, to ensure future local processing and manufacturing in the horticultural, viticultural and agricultural sectors".
Grain Producers SA, through Primary Producers SA, made a submission that suggested viticulture and grain markets could see benefits from the inquiry and increased competitiveness.

Following an initial submission period, in which 13 submissions were made, the Committee has now identified five key issues:

  1. The occurrence and effect of unfair contractual dealings to address the inequitable bargaining power that exists between local primary producers and retailers in their respective supply chains.
  2. The barriers preventing producers from entering larger supply chains with a specific focus on how producers can better meet the availability, quality and pricing requirements of larger suppliers, including the impact and importance of centralised markets in this process.
  3. An update in relation to whether the Essential Services Commission of SA has conducted a review of the entire grain supply chain.
  4. How producers' production costs could be reduced or passed along the supply chain.
  5. A review of the recent changes to the federal codes of conduct to ensure the adequate protection of South Australian producers.

The Committee is now seeking further comments and evidence as part of stage two of the inquiry.

GPSA CEO Darren Arney encouraged all interested parties to take the opportunity to review the Issues Paper and provide their comments, either directly to him on 1300 734 884 or to the Committee.

Full details of the key issues is available in Section 4 of the Issues Paper:

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