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 Fresh take on price war 

Fresh take on price war

08 Feb, 2012 11:30 PM
REGION- The major supermarkets went into a frenzy in 2011 discounting milk and now in 2012 fresh produce is the victim of a price war between stores on the Fleurieu Peninsula.

A new Coles campaign, which began on February 1, will see prices cut on at least a dozen popular fruit and vegetables every week.

Coles General Manager for Fresh Produce, Greg Davis said the new campaign is good news for Australian growers who have produced a bumper crop thanks to ideal growing conditions around the country.

"By offering customers low prices on fruit and vegetables Coles expects to increase sales, providing a more certain market for Australian growers who with such an abundance of product may otherwise end up having to leave some crops in the fields," Mr Davis said.

"Our customers rightly expect the very best quality, but price is an increasingly important factor for many when choosing what to buy and where to buy it.

"I'm also proud of the fact that over 96 per cent of Coles' fresh fruit and vegetables are Australian grown."

Market gardener and Victor Harbor Farmers' Market manager Brenton Tamblyn said all growers will be affected by the price war that will escalate involving fresh produce.

"The people really caught are the small shop owners who will struggle to compete as Coles can afford to sell fresh produce for a loss," Mr Tamblyn said.

"This impacts on the small business owner and the farm gate.

"I don't think it will seriously affect the Farmers' Market, which operates every Saturday morning, as we attract ethical shoppers.

"However it will affect some of our producers.

"It will force prices down, which will please customers, but what it will also do, it will close farms and shops down.

"Is that what we really want? As it will lead to a lack of competition, diversity, jobs and eventually the importing of more food."

Michael Phillips of SA First Quality Greengrocers in Ocean Street, Victor Harbor, travels to market three times a week to buy fresh produce and says he has seen it all before.

"At the end of the day if small businesses close, customers will pay through the nose," he said.

"You need competition to keep everyone honest.

"The supermarkets do specials, but mark up other lines and then after a couple of weeks, up go the prices.

"Generally the prices are no better and the quality is nowhere what we have."

Veg Out proprietor, Frank Vizzari, said there is a glut of fresh produce in Australia and believes the focus on it by supermarkets can be a positive one.

"When there is a large supply then prices have to come down to move the produce," he said.

"Supermarkets have been around for decades and we are used to the competition.

"It is not really affecting me, but I do drop prices to compete."

*What do you think? Are the discounted fruit and vegies a good thing? Vote in our online poll at www.victorharbortimes.com.au

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POLL
Q: Are the discounted fruit and veg prices by major supermarkets a good thing?

Yes, the cheaper the better
(26.9%)

No, it is unfair for farmers and small business
(69.2%)

Unsure
(3.8%)

Total Votes: 52
Poll Date: 09 February, 2012

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