NEWS that one supermarket giant will be discounting a range of fruit and vegetables by up to 50 per cent has raised concerns by the NSW Farmers’ Association.
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Coles supermarkets announced yesterday up to 12 fruit and vegetable varieties will be discounted each week in a sign of the ongoing supermarket war on prices.
The supermarket giant has promoted the discounted prices state-wide with customers now being able to purchase 500 grams of carrots for just 88 cents this week.
Also among the huge discounts are truss tomatoes at $2.48 per kilo, kent pumpkin at 98 cents per kilo and yellow white nectarines at $2.67 per kilo.
NSW Farmers’ Association vice president Peter Darley said the situation is “pretty concerning” for fruit and vegetable producers.
“They will set the prices [to farmers] and say take it of leave it ... it will lead to a higher importation of fruit and vegetables,” he said.
He said while “consumers may be “jumping for joy” at the discounts, they will pay for the discounts somewhere else.
Mr Darley said Coles would be loosing $8 on a tray of truss tomatoes at the current wholesale price and said prices on pre-packaged items will be increased to recoup the loss.
While apples are not currently subject to these super discounts, Mr Darley said he would be concerned for producers across Orange if they were to be.
The Farm Gate by Nashdale Fruit Co owner John Reynolds said it will lead to growers being told what price they will be paid.
“You can’t compete, what do you do? You just hope that the general housewife can see it,” he said.
“I’m pretty confident that the householder that buys off me at the markets will still buy off me ... they don’t like supermarkets, but I hope they’ll be loyal to me.”
Slice of Orange co-owner Lisa Lovick said huge discounts offered by Coles will keep driving producers out of business.
“We’re concerned about producers loosing their market,” she said. However she believes the store’s “savvy customers” will continue to choose quality over discounts.
A Woolworths spokesperson said a basket of popular everyday fruit and vegetables is around 30 per cent lower than Coles.
“While other retailers may offer a narrow range of short-term specials, Woolworths is known for our consistent best quality and value on fresh food,” the spokesperson said.
The spokesperson said customers should watch out for new “promotional activity” starting today.
nadine.morton@ruralpress.com
