The NFF regards competition within the marketplace as a major driver of industry innovation, investment and international competitiveness. It is critical that competition laws are effective at maintaining and improving competition across the agricultural supply chain.
Australia’s current competition policy framework does not adequately protect farmers. Farmers are subject to unfair and anti-competitive commercial practices Current legislation fails to prohibit such behaviours.
The effect Is the unfair diminishing of the profitability and viability of some farm businesses. Current competition law has proven ineffective at protecting farmers from harmful behaviour and forced them to accept commercial terms that transfer risks and responsibilities that should be held elsewhere. In some cases this leaves farmers unable to operate profitable businesses.
Commercial arrangements in perishable food supply chains hinder the longterm productivity growth of the industry by deterring productivity-enhancing investments made by farm businesses.
Often these investments will not be made because the producer’s supply arrangements leave the farm business too uncertain of its future revenue or provides the farm business with such a small portion of revenue that such investments are not viable.
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