Monday, June 16, 2008

The Fresh Food People - What A Joke.

Here's evidence of what we've suspected. Competition in the supermarket sector is more fiction than fact. Competition between Coles and Woolworths may be for market share, but it certainly doesn't translate to competitive pricing for the poor suckers aka Customers. We know that the claims to "fresh food" made by the major supermarkets in Australia is bogus. We know that the death of the small independent fruit and vegetable vendor that has happened over the past 15 years is almost complete and now we get to see what the real game is.

Wipe out the small operator with predatory pricing, then when they are gone, the big players can ratchet up prices to whatever level they like, with impunity. We won't even mention the poor old farmer who is being gutted in the process. This from the Brisbane Sunday Mail this last weekend. (Australia)

Vege price outrage—Food giants under fire for mark-ups of 250 per cent

It's enough to make you cry. Customers at Australia's big supermarket chains are paying through the nose for onions and other winter vegetables…and it seems it has little to do with the weather or fuel prices. Brown onions, which fetch 90 to $1 per kilo at the wholesale markets, were being sold for almost 3 1/2 times that price at some Woolworths stores last week. And potatoes costing $1 per kilo at the markets were on the shelves for $2.98 per kilo at both Woolies and Coles. Carrots were almost double the wholesale price and other winter staples such as broccoli, pumpkin and cauliflower all showed big increases. Carrots wholesaling for $1.20 a kilo were sold for up to $2.25 at Coles, while broccoli at the markets for $1.75 per kilo was priced at $2.28 at both Woolies and Coles. The Sunday Mail (Brisbane), June 15.

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