AUSTRALIA'S supermarket duopoly has been confirmed as the most powerful in the world.
An investigation by The Weekly Times shows no higher concentration of retail power anywhere. And critics say the market power of Coles and Woolworths hurts both farmers and consumers.
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The Australian Competition and Consumer Commission has found Woolworths and Coles share up to 60 per cent of retail grocery trade.
But that figure is disputed by PricewaterhouseCoopers and Euromonitor, who have both put the combined market share at up to 80 per cent.
In South Africa, the combined share of the two leading supermarkets is 42 per cent, while in the US the leading two supermarkets account for 28.4 per cent of grocery trade.
In the UK the two biggest supermarkets - Tesco and Asda - account for 48 per cent of retail sales, the biggest share held by two leading supermarket competitors outside Australia.
Research group TNS Worldpanel found the UK's four big supermarket chains accounted for 76 per cent of retail sales in the sector.
Independent senator Nick Xenophon said Coles and Woolworths had "far too much power".
"There wouldn't be a country on the planet - with the possible exception of Cuba - that would allow this level of concentration in the grocery market," Senator Xenophon said.
"Farmers are being presented with a take-it or leave it attitude by the two supermarket chains, driving farm gate prices down further and further."
Senator Xenophon's comments follow calls by Nationals Senate leader Barnaby Joyce to split both Woolworths and Coles to create four supermarket chains.
A spokesman for Coles pointed to last week's CommSec report, which asserted the "small number of major companies in retailing, banking and airlines is a function of our relatively small population" and distance from other developed economies.
A spokesman for Woolworths said Australia had a competitive grocery market which had seen serious new entries from international companies Aldi and Costco.
