Making tweaks to improve the efficiency and fairness of markets for agricultural produce is an ongoing, never ending project.
Industries, markets and the whole economy are in a constant state of change, and so market regulation and competition policy must continuously adapt.
While this change and need to adapt is normally slow, there are a couple of factors converging at the moment which has put market regulation under the microscope as we enter a federal election campaign.
First came COVID-19 and constrained supply chains which have resulted in skyrocketing costs of important agricultural inputs, like fuel, fertiliser and chemicals.
Growers over the past two years have felt more than the normal squeeze of these increased costs, reporting that prices at the farm gate are not keeping pace with the additional cost of production.
In parallel, the Australian Competition and Consumer Commission in late 2020 published a report on its Perishable Agricultural Goods Inquiry, recommending changes to the Food and Grocery Code and government support for measures that increase price transparency.
Most recently, the 2020-21 annual report of the Food and Grocery Code Independent Reviewer has identified room for retailers to better meet their own voluntary standards in dealing with price rise requests from suppliers.
In response to these factors, different parts of the agriculture lobby have made competition and market policy a key plank of their election platforms.
Ausveg, the national peak vegetable body, is calling for freely available, accurate and real-time insights on market prices and consumer purchasing trends.
The National Farmers' Federation meanwhile is calling for reform to competition laws. This includes strengthening unfair contract prohibitions, the establishment of a Perishable Goods Advocate to fight for growers to get a fair go, and giving consideration to making code of conduct mandatory for all agricultural commodity markets.
Whether either major party picks up and takes to the election any part of these recommendations to improve the efficiency and fairness of agriculture markets remains largely unclear.
The LNP in government had already started rolling out funding to support price transparency projects led by industry. And Agriculture Minister David Littleproud through media interviews has also hinted at an appetite for updating market regulation.
The Labor Party is yet to reveal much in the way of agricultural policy generally, and nothing substantive on markets.
Given the factors at play in the sector today, the health of our markets will be a key issue for growers up to the election and beyond.
