Competition in Australian Market Essay

1347 WordsSep 9, 20126 Pages
A Senate inquiry into Australia's food processing sector says the dominance of the two major supermarkets must be addressed. The wide-ranging report is the culmination of a year-long investigation into Australia's food processing industry and was released just as Coles reported a 16 per cent increase in earnings, driven by its aggressive discounting strategy. Over the past year, the senate select committee has held nine public hearings at locations around the country, and has received 70 submissions. It's now produced a report that makes more than 30 recommendations covering areas as diverse as agricultural education and training, industrial relations, infrastructure and transport concerns and barriers to export. But the committee spent a lot of its time trying to find evidence to support claims commonly made in rural Australia that the major supermarkets abuse their market power, and put the squeeze on farmers and manufacturers. While there were many things about which the Coalition, Labor and independent members of the committee agreed, they did not agree on how to deal with the issue of supermarket power. The committee chairman, Tasmanian Liberal Senator Richard Colbeck, says issues around supermarket power are complicated, but they certainly exist. "It's quite clear to members on the committee that there are some issues there that need to be dealt with," he says. "The extent of those, I think is something that needs to be determined, and that's one of the reasons why we've determined that the supermarkets themselves put in place a mechanism to actually measure the satisfaction of [people] of the relationship they have with suppliers down the supply chain." "They have their corporate plans, they have their corporate social responsibility processes, and they expect their suppliers to comply with those. "I would have thought that their supplier

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