Tough new measures aimed at limiting the market power of Australia's major supermarket chains and a price watch scheme are expected to be the main thrusts of the consumer watchdog's report into grocery prices.
The Australian Competition and Consumer Commission (ACCC) today will deliver to the federal government the report of its six-month inquiry.
Consumer Affairs Minister Chris Bowen is expected to release the study next week.
However, the Australian Financial Review today reports that the ACCC is expected to propose at least six major reforms in the report, including the establishment of a Grocery Watch price monitoring scheme.
The introduction of unit pricing, a ban on restrictive leases to prevent competitors setting up in shopping centres, and restrictions on the number of large supermarkets allowed to set up in catchment areas are also tipped to be in the report.
The ACCC is expected to recommend an overhaul of zoning laws, allowing retailers such as US discounter Costco to open stores in areas previously zoned non-food retail.
ACCC chairman Graeme Samuel is also expected to recommend tougher horticultural regulations to make more transparent the profits farmers, wholesalers and retailers make on produce.
The inquiry, which began hearing evidence in April, was instructed by the government to look at the structure and nature of competition in the grocery industry at the supply, wholesale and retail levels.
Other elements within its terms of reference included the competitive power of independent retailers, retailers' prices and how they were represented to consumers, and impediments to efficient pricing along the supply chain.
Coles and Woolworths together control 78 per cent of Australia's packaged grocery sales worth $59 billion a year.
