Food Price Determination in the Australian food industry

Summary

The value chain is perceived by many participants, from farmers to consumers, to lack transparency in relation to price determination and profit allocation. This has resulted in discussion and comment from, for example, farmers, peak industry bodies and consumers supportive of sustainable agriculture, about the apparent discrepancy between farmgate prices received by producers, both for produce consumed domestically and for export, and the prices paid by consumers.There have been attempts to draft and introduce to the parliament Bills that would require supermarkets to, for example, display the farmgate price next to the retail price. Although supermarkets have attempted to respond to concerns about the pricing ‘system’, they can be perceived as having a vested commercial interest in the discussion.Although Australia exports around two thirds of its agricultural food production, in many instances, this provides a relatively minor contribution to total international trade—the impact of this on Australia’s ability to influence prices should be put into context. This report will aim to provide information, from a neutral source, on price determination that considers the variety of inputs, processes, economic forces, etc that are reflected in the final price of foods—minimally, substantially and elaborately transformed—produced in Australia for domestic consumption and export.

Program

National Rural Issues

Research Organisation

Freshagenda Pty Ltd

Objective Summary

To undertake a study that provides a better understanding of factors in domestic and export value chains that influence pricing and, in particular, farmgate prices. The new study builds on the 2004 Price Determination in the Australian Food Industry report and recognises the worth of improving transparency and price disclosure through the value chain.

Project Code

PRJ-009688

Project Stage

Closed

Project Start Date

Monday, September 1, 2014

Project Completion Date

Friday, December 19, 2014

Journal Articles From Project

Not Available

National Priority

An environmentally sustainable Australia

National Priority

Advanced Technology

National Priority

NRI-National Rural Issues

Contact

Related publications

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Agvet collaborative forum project - fact sheet