Federal government announces Competition Policy Taskforce

APAL has been very vocal regarding the need for the federal government to address the retail duopoly.  

APAL was pleased at the government’s recent announcement that it will establish a Competition Policy Taskforce to provide continuous advice to the government. APAL sees this ‘continuous advice’ as a positive step – recognising that there is already a plethora of reports addressing the main areas of concern and that there is a need to just get on and do it.  

There is no need to try to determine whether there is any anti-competitive behaviour in the retail sector. That boat sailed long ago. Market share, market share compared globally, growing profit margins, profit margins compared to other overseas retail sectors, high price-to-earnings ratios pricing them more expensive than all of Australia’s banks and mining companies, media reports of massive price gouging, not to mention billion-dollar profits, and so on – there are more than enough red flags. 

The entire horticulture sector will be pressing the government to prioritise our sector as part of this taskforce. Increased powers to the competition watchdog, the ACCC to grant it real-time access to retailers’ data to observe margins and buying behaviours, and dramatically increased penalties and sanctions, including temporary market-cap powers to ensure compliance, are just some of our asks. 

Importantly, if retailers are behaving ethically, these measures will not impact them. 

Apple and pear carbon footprint – one of the lowest in the world 

There is continued focus on the agriculture sector and its contribution to greenhouse gas emissions. Food production is reported to be responsible for one-quarter of the world’s greenhouse gas emissions. This includes emissions produced by growing, rearing, farming, processing, transporting, storing, cooking and disposing of the food we eat. 

However, it is important to remember that apples and pears, along with nuts and citrus, are the most sustainable foods in the world – even when including transport. 

It is estimated that apples produce just 0.4kg of greenhouse gases per kilogram, compared to 60kg from beef, 24kg from lamb, 4.5kg from eggs and 4kg from rice.  

In addition, it is estimated that a hectare of orchards each season fixes about 53 tonnes of CO2 and releases 40 tonnes of oxygen. Also, given that Australian growers provide 99.7 per cent of the country’s apple and pear needs, our ‘carbon miles’ are reduced significantly. 

This is a very simple and positive message that we continue to promote to regulators.  

This article was first published in the Spring 2023 edition of AFG.