SUPERMARKET giant Woolworths says farmers have nothing to fear from the supermarket giant's pledge to cut grocery prices.
VFF president Andrew Broad said on Friday that Woolworths' pledge to cut the price of 5000 grocery items was a frightening prospect for farmers.
Mr Broad said price cuts at the Woolworths’ checkout would mean cuts at the farm gate.
"The reality is the cost of living has gone up not only for Woolworths customers but for farming families as well," he said.
But Woolworths Limited spokesman Benedict Brook said today Woolworths' price cuts were made possible by the group, which has 823 supermarkets in Australia, reducing its internal costs.
"There's no need for (farmers) to be concerned," Mr Brook said.
The supermarket chain, for example, had streamlined its distribution network, and revamped its internal processes.
"We're not asking our suppliers to make these cuts for us," Mr Brook said.
Woolworths supermarkets sold $34.7 billion worth of food and liquor last financial year, the company's chief executive Michael Luscombe revealed last week.
That was an increase of $1.7 billion on the previous year.
