With the cost of living squeeze impacting us all, it’s become more and more apparent that the major supermarkets are squeezing harder than they should be. The price of a supermarket basket is skyrocketing along with their shareholder profits.
Meanwhile, struggling farmers and food producers are reporting that they’re holding or even lowering prices in an attempt to survive and ease cost pressures on Aussie households, but it’s not being passed on at the checkout.
In recent weeks, MP David Littleproud, Queensland Premier Steven Miles and Prime Minister Anthony Albanese have all announced investigations into supermarket price gouging.
Squeezing Suppliers and Customers Alike
I’ve had previous experiences dealing with the majors as a supplier in other food businesses, and it’s always been very clear to me that they are very much profit focused.
The record profits being posted in the last 12 months are proof that they are prioritising making as much money as they can while Aussie farmers and everyday families are the ones making sacrifices.
We must remember that as shareholder-pleasing corporations, any appearance of community building can really be viewed as marketing efforts designed to drive greater market share and profits.
For example, by removing Australia Day items and misreading how important that is to the public, Woolworths have shown how little they regard things that don't make them enough money.
From a supply chain perspective, there are only three ways they can generate more profit. Being already largely as internally efficient as they can be, the other options are through squeezing their suppliers and customers alike.
Growers and Manufacturers Under Added Pressure
Unlike most local supply chains where people aim to build long-term, mutually beneficial relationships, I have experienced their strategic, regular buyer rotations.
This is done intentionally to ensure suppliers are constantly under pressure. It keeps suppliers more willing to hold off on price increases and offer discounts or specials in order to hold their position on the big supermarket shelves.
There are more and more examples coming to light of what a farmer gets paid at the gate and what price is charged on the shelf, which can often be absolutely ridiculous.
Squeezing supply chains puts added pressure on farms and often smaller businesses who are already dealing with excessive input cost increases, who employ a vast number of Australians, and who make it all possible.
It’s these growers and manufacturers who grow the food and create the products we need!
Family Budgets Tighten While Shareholder Profits Soar
On the customer side, we have a couple of very large and powerful corporations largely dictating shelf prices to the public.
When these guys are gunning for maximum profits, even during an inflation bubble and cost of living crisis, it’s a hard pill to swallow for the Average Joe.
Supermarkets are simply traders, they don’t actually grow or make anything. Don’t get me wrong, they provide an invaluable service and we need them.
We just don’t need them making excessive profits while everyone else is tightening the belt.
Higher prices at the checkout mean either less money in household budgets for other necessities, or less food on the table for families.
The Power of Buying Direct from Local Growers and Producers
Is it any wonder that everyday Aussies are choosing more and more to buy local and direct wherever possible, knowing that their hard earned money is then directly supporting the people who actually make the food they eat.
Local foodie directory Dine Darling Downs embodies this, encouraging everyone to get to know their local producers at the Farm gate or Farmers market.
Founder Kristen O’Brien explains, “You’ve heard the phrase ‘No farmers, No food,’ and it’s true, but we prefer the alternative ‘Know farmers, Know food.’”
“Buying direct from the farmer is not only advantageous for your health, (it’s the freshest produce you can get) it’s great for the environment and our local economy too.”
The Dine Darling Downs initiative ‘Farm to Table’ launched in 2023 and continues to gain momentum, with people eager to learn more about the origins of their food and the story behind what’s on their plate.
Toowoomba Chamber of Commerce CEO Todd Rohl agrees, “Investing in our community starts with where we choose to spend our hard-earned dollars."
“Supporting local farmers, producers, and manufacturers not only sustains the backbone of our economy but also fosters a thriving community spirit."
“We at the Toowoomba Chamber recognise that the heartbeat of our community lies in the commitment to sustainably source and use local goods and services." explains Mr. Rohl.
“Together, we can build a future where our choices echo in the prosperity of Toowoomba, promoting a vibrant and resilient local economy that sustains our great city for generations to come."
DF Smoke Haus Values Loyal Customers and Local Supply Chains
Here at Darling Fresh Smoke Haus, from the time we started it has always been a values-based business.
We really care about our provenance of food, making life better for busy people and connecting directly with our wonderful customers.
All our stockists are also all independently owned businesses who value their loyal customers and local supply chains.
We are a business and like anyone we have to make money to survive and grow, but there is a reason we have held prices as long as we can, despite wearing more cost increases on every single thing we buy.
We know everyone needs value, now more than ever. We’re in this for the long haul.
Shop Locally Today for our Region’s Tomorrow
It is undeniable that there are a lot of cost of living challenges for everyone right now. We all have to balance our budgets, but we don’t have to be completely at the mercy of supermarkets and their price gouging.
There are so many benefits of supporting local producers through farmer’s markets and independent businesses.
They feed us, they employ us and by supporting them we are ensuring they will be there for the future.
Let’s vote with our dollars and make sure that where we can, we are valuing the many good people who make our food, not just the corporations who profit from it.
~ Jeff Schultheiss, Founder of DF Smoke Haus
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