A food and beverage industry roundtable is being held tomorrow (8 April) in Alice Springs, bringing together freight and grocery stakeholder companies to discuss food pricing and insecurity in remote Australia.
Grocery prices in some remote areas cost more than twice those in metropolitan areas, and First Nations communities are disproportionately affected by high rates of food prices and insecurity.
In response, the 2025 budget allocated $50 million over four years to reduce the price of food in remote communities, under the National Agreement on Closing the Gap. Prime Minister Anthony Albanese stated measures would include subsidising 30 essential grocery products in 76 remote stores to meet metropolitan pricing, and boosting warehouse capacity to shorten freight distances and to make supply chains to remote communities less vulnerable.
The scheme is due to commence from 1 July, but remote communities are frustrated by the lack of detail, stating the scheme is “completely unworkable and only benefitting a few”.
Freight and grocery stakeholders are gathering in Alice Springs to discuss the problems with the current proposal, and work towards better solutions, initially suggesting an industry-wide flat rate on freight, which would lower the price of all groceries in regional areas and offer a more sustainable approach to food security.
Central Australian Committee of the Northern Territory Chamber of Commerce chair, Brad Gaddes, will serve as chairperson of the roundtable. He said the event will be an opportunity to address a major cost of living issue facing remote communities across the country.
“The government’s heart is in the right place, but the current scheme isn’t fit-for-purpose,” said Gaddes.
“There is not enough detail, and from what we do know, it will only offer a band aid solution to a complex problem. There should be an industry wide freight subsidy that applies to all freight on all grocery items to all shops in all remote communities.
“A discount for certain products in certain shops will create inequity and complexity. An industry-wide freight subsidy would be more sustainable, easier to implement and more effective,” he said.
Roundtable attendees will include;
- Transport groups – Stanes Transport, K&S Freighters, Central Desert Transport
- Suppliers – Tip Top and Mars Food
- Politicians – Senator Jacinta Price and CLP Lingiari candidate Lisa Siebert
- Retailers and wholesalers – Metcash, TAH Northern Trading, LAE Supermarkets
Commonwealth-owned company Outback Stores will be funded to manage the scheme, and independent and community-controlled stores will reportedly also be eligible, although criteria has not been confirmed.
The roundtable committee also noted that experienced warehousing businesses in the Northern Territory have not been consulted on supply chain issues.
“It’s not the job of governments to tell people what to eat. They should stay out of people’s fridges and pantries and focus on legacy reforms that deliver meaningful outcomes,” said Gaddes.
“We want Labor and the Coalition to commit to adopting a remote food freight policy during this campaign to ensure people in our communities have access to affordable, healthy food. The first step would be to facilitate an industry consultation post-election,” he concluded.
A communique will be issued following the roundtable.
