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Supermarket supply-chain cuts push small banana farms toward extinction, farmer says

A NSW banana grower says Coles ending his supply contract to simplify its supply chain signals the demise of small family farms.

Amrit Singh, a banana producer from New South Wales, says the termination of his long-standing supply deal with Coles, part of the retailer’s effort to simplify its supply chain, marks a threat to small, family-run farms. In recent months both Coles and Woolworths have withdrawn several local products, citing supply-chain changes, and analysts note a shift toward buying from packhouses or “middlemen” and expanding own-brand ranges.

The new sourcing is expected to come from north Queensland, where higher freight costs disadvantage smaller growers. Industry voices such as Samuel Miller of NSW Farmers and Gary Mortimer of Queensland University of Technology warn that consolidating suppliers places risk on dozens of farms and could reduce regional produce diversity. Woolworths and Coles argue that aggregation and modernised distribution centres improve efficiency and food security, but critics say the trend may marginalise small producers.

Why it matters

It shows how major retailers’ supply-chain strategies can jeopardise the viability of small agricultural businesses.

In this story

supply chain centralisationsmall farmsbanana farmersupermarketmiddlemenown-brand productsdistribution centresfood securityproducer vulnerability
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