Australian Government support for fresh produce suppliers of supermarkets

The Australian Government launched its Supporting Fresh Produce Suppliers — Food and Grocery Code Education Program on 11 November, which is providing $2m in grants to help fresh produce suppliers gain the skills they need for developing better deals with the big supermarkets.

This program builds on the government’s broader efforts to address the market power imbalance between fresh produce suppliers and large supermarkets while ensuring there are penalties for any wrongdoing.

Under the program, eligible industry associations are able to apply for grants to develop and deliver national education programs that provide smaller fresh produce suppliers with the tools and confidence to negotiate better deals with major grocery retailers.

Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh said: “Farmers put food on our tables, but too often they’ve been left with crumbs at the negotiating table. This program will give smaller suppliers the knowledge and confidence to stand up for themselves, ensuring Australia’s food system is fair from paddock to plate.”

The Independent Review of the Food and Grocery Code of Conduct, undertaken by Dr Craig Emerson, found that fresh produce suppliers are particularly vulnerable in negotiations with large supermarkets because of the perishable nature of their products, long grow times, and high upfront costs that cannot be recovered if the product is not sold.

Minister for Agriculture, Fisheries and Forestry, Julie Collins MP said: “Our farmers and producers supply the high‑quality food that we all love and rely on, and we expect big supermarkets to do right by them. That’s why we’ve made the Food and Grocery Code mandatory and why we’re delivering this funding to ensure farmers get a fair go at the farmgate.”

Grants are available for national fresh produce industry associations that represent one or more of the following supplier categories subject to the Code, specifically: fresh fruit, fresh vegetables, fresh mushrooms.

Applications open on 5 December 2025 and close on 23 January 2026.

For more details, including guidelines, visit: business.gov.au/grants‑and‑programs/supporting‑fresh‑produce‑suppliers‑food‑and‑grocery‑code‑education‑program.

Image credit: iStock.com/Kira-Yan