Australia news live: supermarket suppliers to raise grievances at competition watchdog hearing

Fresh produce suppliers are expected to appear before an inquiry into supermarkets, Australian Associated Press reports.

It follows allegations grocery giants used their market power to get the upper hand over farmers, some of whom feared raising their concerns with their contract partners.

The Australian Competition and Consumer Commission is conducting public hearings as part of its supermarkets inquiry, with produce suppliers scheduled to appear on Friday.

Fruit and vegetable suppliers earlier told the commission there was a lack of transparency around pricing and volumes and supermarkets were able to retain a disproportionate amount of the value, leaving suppliers with more of the risk.

Many expressed concerns about their capacity to negotiate prices, the commission noted in its interim report in August.

Other concerns related to supermarkets encouraging oversupply, then rejecting produce more regularly.

"These suppliers suspect some rejections are to manage supply levels rather than reflecting genuine quality concerns," the commission reported.

Some complained of being held liable for damage caused to produce during freight, while not being able to pick the transport provider.

"Suppliers consistently reported they would not raise their concerns with the supermarket due to fear it would jeopardise their commercial relationship," the commission reported.

Share Welcome Good morning and welcome to our live news blog. I'm Martin Farrer with the top overnight stories and then it'll be Emily Wind with the main action.

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In Canberra, fresh produce supplies are due to appear at a public hearing the Australian Competition and Consumer Commission is holding for its inquiry into supermarkets – and whether they're using their market power responsibly. Expect much talk about the price of milk. More on that coming up.

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