Monday 1 March 2010
For immediate release
Woolworths and Coles ethical sourcing policies seem flawed
AUSVEG remains seriously concerned about the application of ethical sourcing policies on overseas
suppliers compared to domestic suppliers despite recent meetings with Coles and Woolworths
regarding the policies.
“AUSVEG sought answers from both Coles and Woolworths on the application of ethical auditing and
quality assurance programs with overseas suppliers and despite a detailed briefing remains concerned
about aspects of the programs,” said AUSVEG Chief Executive Officer Richard Mulcahy.
AUSVEG is the national peak industry body representing the interests of around 9,000 Australian
vegetable and potato growers.
“These audits seem like a costly public relations exercise. Woolworths claimed that the drive for ethical
sourcing was from consumers. Yet if they are so concerned about consumers why do they continue to
import vegetables from overseas when Australian consumers consistently say they would prefer to buy
locally grown produce?”
AUSVEG CEO Richard Mulcahy and Communications Manager Hugh Tobin have met with staff from
both retailers in the past two weeks to address concerns raised with them by growers.
“Any reasonable person can see that there are issues with these policies in terms of their application in
foreign countries compared to Australia. Perhaps a supplier in Communist China will be compliant with
the local law but it is not fair to say that they are treating their workers in the same manner as
Australian growers,” said Mr Mulcahy.
“Perhaps Woolworths can claim that their international suppliers are meeting the local laws in regards
to freedom of association, but any reasonable person knows that a worker in Communist China does
not have the same freedoms as a worker in Australia. The policy is inconsistent and shallow in its
purpose.”
“All this policy does is place further regulations on Australian growers who already comply with state
and federal laws, while growers overseas are exporting produce into Australia.”
“Woolworths seem to be second guessing governments by stepping into areas that are the
responsibility of Workcover, the Immigration Department and the Workplace Ombudsman to mention
just a few. There seems to be no limit as to how far this large corporation is willing to extend its reach
when it comes to intervening in their suppliers’ businesses.”
“Australian growers are inundated with audits and paperwork from state and federal government
departments and bureaucrats. The last thing they need is the retailers running around acting like
another government department. It is unnecessary and adds further input costs that make it harder for
growers to compete with imports.”
“Woolworths assured us that going forward there would be an improvement on communications with
industry which to this point has been non-existent at an industry level notwithstanding their dialogue
with individual growers.”
“AUSVEG will be discussing the matter at Board level on how to proceed from here as we remain
unsatisfied with the application of these programs,” said Mr Mulcahy.
ENDS
MEDIA CONTACT: Hugh Tobin, Communications Manager, AUSVEG
Ph: (03) 9544 8098, Mob: 0431 939 920, Email: hugh.tobin@ausveg.com.au
Media Release
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