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 Coles denies discounts will harm Victorian producers 

Coles denies discounts will harm Victorian producers

31 Jan, 2012 10:47 AM
Coles has unleashed its latest weapon against supermarket rival Woolworths, offering customers – new and old – rock-bottom prices on fruit and vegetables.

There is concern from farming and agriculture groups that the aggressive discounting of 50 per cent on fresh produce lines is unsustainable long-term.

Coles spokesman Jon Church disagreed.

“We have a different relationship with our growers than most other retailers – ours grow specifically for Coles. We can plan in this sort of promotion,” Mr Church said.

“We’ve been in negotiation with them [growers] for months. There is so much produce at the moment because we’ve had a bumper growing season and a lot were worried about how they were going to move it [the produce].”

Discounted fruit and veg prices for Victoria

  • Truss tomatoes - $1.70 500g pack
  • Asian vegetables - $1 per bunch
  • Sundowner apples - $1.95 per kilo
  • Carrots - $0.94
  • Rockmelon - $1.50
  • Limes – 6 for $2
  • Cauliflower - $1.72 each
  • Sweet potato - $1.98 for 1kg bag
  • Peaches - $2.96 per kilo
  • Red seedless grapes - $2.65 per kilo

But the peak body representing vegetable growers, AusVeg, said the announcement was ''concerning'' because, while an oversupply of produce this season meant some growers would benefit in the short-term, it was unclear what impact the price reduction would have on the industry over time.

AusVeg spokesman William Churchill said the push by the major retailers to capture market share would put pressure on other growers who did not supply Coles, as competitors tried to replicate the offer to their customers.

''We can see that the supermarket wars have well and truly arrived in the fresh produce industry and this fight will get savage," Mr Churchill said.

Asked if Coles was worried about the potential impact on smaller greengrocers, Mr Church replied: “Those guys have competed with Coles for a very long time.

“They have a different range, different products and a different way of doing things. They are very good at what they do for their customers.”

Coles is due to announce its second-quarter sales on Thursday.

Woolworths, which is yet to reveal if it will match Coles’ latest round of discounting, will announce its second-quarter sales today.

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comments


Date: Newest first | Oldest first
coles and woolworths do not give customers discounts ,farmers do.we are being payed prices that are 20 years old .The markup from farm to customer is in some cases 500%
Posted by becauseican, 31/01/2012 11:40:48 AM
What will be sad to see go one day will be the smaller greengrocers. They beat supermarkets hands down when it comes to choosing the best produce from the Melbourne Markets, only putting the best on display, being able to tell a customer that their strawberries come from Queensland and they taste great and going the extra mile to source a hard-to-find vegie for the odd customer. When you go into the bigger supermarkets and a young worker looks at you blank when you ask for fresh salad mix - I worry the corporates really don't care about the consumer - just their hip pocket.
Posted by Joan Elizabeth, 31/01/2012 11:44:02 AM
Not too long ago we were paying around $30 per kilo for banana's because of supply and demand. Famers can't have it all their own way.
Posted by My thoughts, 31/01/2012 12:48:21 PM
If these shops are to give discounts then these shops themselves should give the discount.

Selling something cheaper because it cost you less is just an honest business practice, nothing to tell the world about.

Posted by Adrian of Dapto, 31/01/2012 12:57:47 PM
These prices are not perminatly cut. If you look at the fine print on the advertisments, it says they are on special untill Feb 2. These are weekley specials re-badged with a clever slogan.
Posted by aford, 31/01/2012 1:13:23 PM
You only have to look at the number of Dairy Farmers that have sold up because of the drop in price of milk. This is only going to hurt farmers further. With the number of foreign countries buying up our land to service their own countries needs Australia is going to be left with nothing. We need stronger Government with increased Tariffs on imports to match the tariffs that other countries have. We have given away too much and are now accepting too much.
Posted by Back to the wall, 31/01/2012 1:41:14 PM
Australia needs to bring in an import tax to bring prices up to Australian Price to make it a fair playing field. Australia needs a fair go! not an import influx. it will never change until they do.
Posted by TAXES, 31/01/2012 1:42:37 PM
Obviously farmers will hurt, maybe not the ones that are on Coles contracts but all the others will. The only upside is may be the fatty lards that only eat rubbish may be tempted to eat better and lose some fat.
Posted by hoping, 31/01/2012 2:02:39 PM
First of all, after reading through all these comments about supermarkets destroying australian growers....

Supermarkets stock 96% Australian Produce. The 4% is the worst case senario during the growing year. For example, lemons do not grow throughout the entire year. So over summer they are imported from america, the same happens with grapes in the australian down period. Supermarkets cater for consumer demand. If you walked into a supermarket to discover that they only stocked seasonal items, i bet you all would kick up a fuss. No lemons in summer?

Posted by Fruit manager, 31/01/2012 8:14:05 PM
Supermarkets look after their selected growers very well, when they are in difficulty producing enough stock, they charge more, and the supermarket absorbs the price. A Fruit market will just buy stock from a cheaper supplier. supermarkets stick with their suppliers.

Also farmers aren't getting paid less for milk, get real guys, the supermarket absorbs the profit margin, and raises prices elsewhere. Its common sense.


Posted by Get real guys., 31/01/2012 8:20:07 PM
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Tomatoes, carrots, rockmelon and peaches are among the items being heavily discounted. Photo: Josh Robenstone
Tomatoes, carrots, rockmelon and peaches are among the items being heavily discounted. Photo: Josh Robenstone
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POLL
Q: Are you more likely to shop at Coles because of the fruit & vegetable discounts?

Yes
(18.6%)

No
(70.8%)

Haven't decided
(10.6%)

Total Votes: 5695
Poll Date: 31 January, 2012

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