Growers under severe pressure

The owner of a Cooloongup supermarket has leapt to the defence of fruit and vegetable growers following Coles’ decision to slash prices by up to 50 per cent.

Picture by Monique Dirksz:Cooloongup Super IGA owner Leigh Garrett is backing fruit and vegetable growers.

Cooloongup Super IGA owner Leigh Garrett also questioned whether growers could survive further cuts to their small margins.

‘‘They are confronting an increasingly difficult growing climate and have to regularly compete with imports from low-wage markets with different production and quality control standards,’’ he said.

‘‘As a grocery retailer, I am well aware that competitive pricing is part and parcel of our business, but we need to look beyond short-term gains in market share.

‘‘We must understand that every business owner has his or her breaking point.

‘‘The inescapable point here is that as growers receive less of a return from the business of growing, they may be able to get a better return from selling the land they use for growing and thereby exit the market.’’

Mr Garrett questioned how growers would be able to halve their wholesale prices on an ongoing basis and remain viable.

‘‘The more suppliers you have in the market, the more consumers get to enjoy competitive prices and a greater variety of products,’’ he said.

‘‘I believe t h i s can be achieved without shutting down small local businesses or putting in jeopardy our State’s ability to feed itself.’’

Baldivis vegetable grower Sam Calameri said profit margins were already slim.

‘‘We have to contend with the rising cost of power, wages and fuel, and to sell at less than we are at present will force us to the wall,’’ he said.

‘‘I don’t know who is prepared to supply supermarkets at this cost and I doubt if anyone in WA is prepared to do so unless they have excess stock they want to get rid of — and that’s only a short-term fix.’’