NSW drought: Calls for watchdog to regulate ‘price gouging’ as hay suppliers increase prices

There are fears fodder suppliers are cashing in on one of the worst droughts in 100 years by forcing desperate farmers to purchase hay at extortionate prices.

Drought-stricken graziers say it has become near impossible to feed their starving livestock as the price of fodder and grain soars by up to 400 per cent.

Some interstate suppliers have purchased bales of hay for $100 each in previous months and resold them to NSW farmers for up to $400, Seven News reported.  

Robert Sanders and his partner Janice Foster, who run a 242-hectare property in Tarlo in the NSW Southern Tablelands, described the cost of feed as ‘punishing’. 

There are fears fodder suppliers are cashing in on one of the worst droughts in 100 years. This stock image shows farmers in Central Western NSW as they battle the crippling dry spell

‘When I sold hay, we worked out what price we needed to get after the costs of hay making and stuck to it while the crop was sold,’ Mr Sanders told The Goulburn Post.

‘However, some producers made their crops last year at a certain cost, and now they double and triple the price they sell at.

‘To me, this is profiteering and if the government want to do something really useful, they should pass legislation that prevents these operators gouging their fellow farmers.’ 

There are calls for the Australian Competition and Consumer Commission (ACCC) to investigate whether the price hikes are down to normal market forces or the result of illegal price gouging.

Drought-stricken graziers say it has become near impossible to feed their starving livestock (stock image)

Drought-stricken graziers say it has become near impossible to feed their starving livestock (stock image)

An ACCC spokesman told Daily Mail Australia it ‘prioritises competition and consumer issues in agriculture industries’, but said it could not prevent businesses bumping up prices.    

‘While the Competition and Consumer Act prevents businesses from colluding on prices and the Australian Consumer Law prohibits businesses from misleading conduct, these laws do not prevent businesses from increasing prices,’ they said.

‘The ACCC does not have a price monitoring role across all industries. We would look poorly on any misleading claims about pricing decisions, particularly those made by large or national traders. 

‘Misrepresentations made at a local level or by smaller businesses will be best considered by the NSW Office of Fair Trading.’

Fair trading told the Daily Mail Australia: ‘Fair Trading’s advice to customers who are dissatisfied in their dealings with any trader is to contact them and try to resolve the matter in the first instance.

‘However, customers who are unable to resolve their issues with the trader are advised to lodge a written complaint with NSW Fair Trading at www.fairtrading.nsw.gov.au.’

The NSW government on Wednesday declared 100 per cent of the state was impacted by drought

The NSW government on Wednesday declared 100 per cent of the state was impacted by drought

Meanwhile, the NSW government on Wednesday declared 100 per cent of the state was impacted by drought and said it was open to asking the army to help struggling farmers.

The latest Department of Primary Industries data shows almost 22 per cent of NSW is suffering intense drought, 40 per cent is in drought and nearly 38 per cent is drought-affected.

State governments are able to request military assistance, to help with moving feed and water and other resources, options Premier Gladys Berejiklian is keeping open.

Pictured, an aerial view of a parched cattle feeding operation on the property in Coonabrabran

Pictured, an aerial view of a parched cattle feeding operation on the property in Coonabrabran

‘When things are this bad, you have to have all your options on the table,’ she told Channel Seven on Thursday.

‘We’re not at that stage yet, but if we needed to, we wouldn’t hesitate to call for action.’

Ms Berejiklian said the state government was also looking at other possibilities, including opening up NSW’s national parks for grazing and feed and allowing access to water reserves.

‘We are looking at all the options if we need them,’ she said.

Less than 10 millimetres was recorded in the western, northwest and central areas of NSW over the past month and drier-than-normal conditions are forecast for the next three months across the majority of the state. 

Premier Gladys Berejiklian said the state government may request military assistance to help with moving feed and water and other resources

Premier Gladys Berejiklian said the state government may request military assistance to help with moving feed and water and other resources



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