COLES' latest assault on its suppliers' viability is just one more example of what happens when the power of supermarkets is left unchecked.
For years, the ever increasing dominance of the Coles and Woolworths duopoly has seen their grip tighten inexorably on farmers and other suppliers.
- Have Your Say in the form below
Now, it seems, largely thanks to a new management regime at Coles, the pressure is being applied like never before.
Massive increases in payments for shelf space, "prompt payment" rebates for payments rarely made that quickly and the threat of replacing local products with cheap imports to drive prices down are just some of the strategies that have suppliers wondering what their future holds.
It's no wonder such tactics have become so commonplace considering Coles and Woolworths control up to 80 per cent of the grocery trade.
As independent Senator Nick Xenophon said recently, there would barely be a country on the planet that would allow such a level of concentration in the grocery market.
The result, as Senator Xenophon also pointed out, is farmers and other suppliers are left with nothing but a "take-it or leave it" attitude by supermarkets, with inevitable consequences for farmgate prices.
The latest report of Coles' tactics simply adds more weight to calls for Woolworths and Coles to be split to create four supermarket chains.
Federal politicians have been loud supporters of competition in the telecommunications sector.
It's a tragedy for rural Australia that more of them haven't recognised the need to adopt the same philosophy in the grocery trade.
