Supermarket price gouging: Rise in farmers selling directly to customers
A growing number of Australian farmers want shoppers to buy directly from them as supermarkets come under increased scrutiny due to rising prices.
Delivery service Our Cow believes that supermarkets will soon be obsolete due to the rising popularity of services that deliver fresh produce from pasture to porch.
The farm direct market has grown tremendously in recent months as more and more consumers choose to buy directly from producers to give farmers the best price for their product.
“It’s incredible how much support we’ve received from the Australian community over the last few years,” says co-founder Bianca Tarrant. 2GB radio.
‘Everyone is now becoming aware of what the supermarkets and the big boys are doing to the farmers and how prices fluctuate so much.
“We did everything we could to buy our farm, but we couldn’t afford to just keep getting the prices we were getting for our cattle.
“And we really needed to be able to secure a price and bring some stability to our own farming operations, and provide that same stability to other farmers as well.”
Pictured are Bianca Tarrant and Dave McGiveron, founders of farm direct service Our Cow
A growing number of Australians are choosing to use direct farm delivery services instead of doing their weekly shopping at major supermarkets such as Coles and Woolworths
As many as 100 farmers from New South Wales, Queensland and Victoria have chosen to have their products delivered to Our Cow’s 40,000 to 50,000 customers.
Ms Tarrant said producers could rest easy knowing their products were being loved by families near where they were produced.
“Our customers know that the money they spend… on their groceries actually goes straight back to the farmers and there aren’t 10 middlemen cutting corners,” she said.
“Our farmers get paid more and our customers get a good quality product and they feel confident that they are supporting the farmers.”
Ms Tarrant said Our Cow gave Aussies the opportunity to support farmers with their food choices every day, not just in times of flood or drought.
The service offers locally sourced beef, lamb, pork and chicken, bacon, wild-caught fish, cheese, pet food and alcohol, delivered straight to your door.
A curated box of Paleo Patties, Premium Ground Beef, Rump Steaks, Eye Fillet and Stir Fry Strips costs $149.99, including delivery.
The Coles Group reported on Tuesday that sales were up but profits fell in the first half due to intense competition and the cost of living
The company, founded after the Black Summer bushfires in 2019, explained why their prices are no cheaper than supermarkets.
“We are very similar, but we are not trying to be ‘cheap,’” they said.
“What we’re trying to do is take the boom and bust out of agricultural and food prices, to provide a stable and consistent path for both farmers and customers.
“We pay our farmers a premium for the livestock they produce, which means you’re not only getting a top quality product, but you’re also helping to build a better future for agriculture in Australia.”
The boom in the farm direct industry comes amid growing distrust in major supermarkets such as Coles and Woolworths as prices continue to rise.
The Coles Group said on Tuesday that sales rose but profits fell in the first half due to intense competition and the cost of living.
“Just like households paying higher interest on their mortgages, we pay higher interest on the debt we pay to run the business,” said Coles director and CEO Leah Weckert.
The boom in the farm direct industry comes amid growing distrust in major supermarkets such as Coles and Woolworths as prices continue to rise
Coles sales rose 6.8 per cent to $22.2 billion in the 27 weeks to December 31, but profits fell 3.6 per cent to $616 million, compared with the same period a year ago.
Facing a government investigation into allegations of price gouging, Ms Weckert said Coles makes just $2.60 in profit for every $100 spent in its stores, a margin that had remained stable over the past five years.
The supermarket group also faces stiff competition from Woolworths, Aldi, Costco and Amazon, as well as a wide range of independent supermarkets.
Supermarket prices rose by three percent in the second quarter of 2023/2024, compared to a 3.1 percent increase in the first quarter. Prices excluding tobacco and fresh products rose by four percent, against 5.7 percent.