Time for supermarkets talks over: farmers

THE peak farmers' body is stepping up pressure on the federal government to stop major supermarkets abusing their market power.

The National Farmers' Federation (NFF) on Wednesday said it was time for a mandatory code of conduct for supermarkets, as efforts to develop one voluntarily had failed.

After months of discussion with the giants Coles and Woolworths and other retailers, NFF president Jock Laurie says the group has "lost confidence" a voluntary code can deliver what producers need.

"We want to put some clout in this, so let's move it to the next step," he told reporters in Canberra.

The last thing the NFF wanted was to impose more red tape or compliance costs on the agricultural sector.

But the back and forth bickering wasn't resolving the situation and it was time for the government to get tough.

"Let's actually cut out all the rubbish and get down and find out what the facts are," Mr Laurie said.

He said this didn't mean the NFF was walking away from discussions with retailers.

A mandatory code would strengthen measures to stop supermarkets misusing their power, possibly through mandated financial penalties.

Importantly, it would address concerns about contract negotiations between farmers and retailers.

The NFF has also suggested setting up an ombudsman-like figure to independently resolve disputes.

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