Farmer loses 30-year Coles deal as supermarkets consolidate
Coles ended its 30-year agreement with NSW farmer Amrit Singh, shifting to north Queensland suppliers.
Amrit Singh sold bananas to Coles for 30 years. Now the supermarket has ended his contract as it simplifies its supply chain.
Coles confirmed it would stop selling Coffs Coast bananas, pumpkins, and cucumbers. Coles will source produce from north Queensland instead.
Singh said his business is too small to compete with the larger Queensland industry. Freight costs will be very damaging.
Industry experts warn that centralizing supply chains creates risk. One supermarket decision can affect 40 or 50 farms.
Fewer distribution centres reduce costs for major chains. They buy more directly from packhouses instead of individual farmers.
An inquiry by the Australian Competition and Consumer Commission last year found something important. Coles and Woolworths had overwhelming power in their trade relationships with suppliers.
Coles operates 18 distribution centres now. This is down from 23 in 2019.
- 30
- Years of supply agreement
- 18
- Coles distribution centres now
- 23
- Distribution centres in 2019
- Bananas, pumpkins, cucumbers
- Products being cut
Why it mattersSmall Australian farmers face growing pressure to leave the market. This reduces competition and could limit choice on supermarket shelves.
AustraliaAustralian shoppers may eventually see fewer locally grown fresh produce options and higher prices, while small family farms lose contracts they relied on.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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