US GROCERY giant Costco will invest another $140 million into expanding in Australia.
The US warehouse-style giant sells food and groceries in bulk, plus everything from electrical goods to jewellery.
Shoppers pay a $60 annual membership fee.
The chain has one store each in Melbourne, Sydney and Canberra, but last year lost more than $10 million.
It now aims to open another store in Sydney, one in Brisbane and is investigating opening one in Adelaide and another in Melbourne.
Despite its low prices, some farmers have told The Weekly Times that Costco has been better to deal with than either other major supermarkets.
Victorian Farmers Federation president Andrew Broad said Australia needed more competition "in the retail market for the major supermarkets".
He said competition could come from "mega-stores" such as Costco or from family-run stores.
"Given the (fresh produce and dairy) price war and the conduct they're displaying, the two supermarket model is not in Australia's long-term interests," he said.
"There's not too many places in the world where two supermarkets control so much of the market share."
Costco did not respond to requests for comment.
Meanwhile, Aussie Farmers Direct, which delivers Australian farm produce to suburban homes, has signed its 100,000th customer.
It began production at its Camperdown dairy 12 months ago and has produced about 10 million litres of milk.
It has recently expanded deliveries into Adelaide and Perth and was named Australia's fastest-growing franchise for the second year in a row last year.
German discount grocery store Aldi has continued its aggressive expansion, with 265 stores and plans to open another 30 this year.
