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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-02-09 Daily Xml
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FOOD PRODUCTION

The Hon. I.K. HUNTER (15:35): Previously in this place I have spoken about consumers' rights and particularly their rights in relation to the food industry, product labelling and their right to know how their food is produced. I have spoken about how consumer demand will drive the market to respond to the desire for cruelty-free products.

Today, I am pleased to congratulate Coles Supermarkets on a series of recent announcements regarding food production reforms. Coles Supermarkets is owned by Wesfarmers Ltd boasting over 11 million customer transactions a week and employing more than 100,000 Australians. In recent years, Coles has recognised and acted on the growing concerns of their customers regarding the way our food is being produced. Customers have become more aware of animal welfare issues within the egg and pork industries, sustainability concerns regarding palm oil production and the use of added hormones and chemicals in our meat.

In response to animal welfare concerns regarding caged hens, Coles has now committed to phasing out Coles brand caged eggs by 2013. Coles has also reduced the shelf price of free-range eggs by up to 18 per cent in a bid to encourage customers to move away from caged eggs. This price reduction was initiated as a result of customer feedback indicating that 95 per cent of customers would switch to free-range eggs if the price were lower.

I note that, in August 2009, Woolworths announced that it was reducing the number of caged egg brands it sold to 11, cutting out one of its own lucrative home brand lines in the process and, while I celebrated this announcement in a similar speech given in this place on 14 October 2009, I now fear that Woolworths is at risk of being dramatically eclipsed by its major competitor in the area of ethical food retailing.

Last year, Coles worked closely with the RSPCA to establish its new pork welfare model, and the retailer has announced that it is working with Australian and international pork producers to phase out sow stalls by 2014. In addition, Coles' finest free-range brand pork is born and raised on RSPCA-approved farms where pigs are kept according to the RSPCA's welfare standards, which go way beyond those recommended by the model code of practice for the welfare of animals.

The pigs have space to explore and socialise in large straw-filled shelters and sows have freedom to wallow, build a nest and look after their piglets naturally. In another significant reform, Coles is the first major food retailer in Australia to refuse beef from farmers who use oestrogen boosters to speed muscle development in their cattle. Coles claims that researchers found hormone-free beef to be more tender and of higher quality than the beef injected with oestrogen.

Coles has also taken steps to address issues surrounding the production of palm oil. Palm oil is a key ingredient in many food products as well as a wide range of products such as soaps, detergents and biofuels. More than 80 per cent of the world's palm oil comes from Indonesia and Malaysia, where deforesting practices seriously threaten the orangutan population as well as other species. Coles has pledged to remove palm oil from its Coles brand products wherever possible and, for those products where there is not a suitable alternative, Coles has committed to using only certified sustainable palm oil in all Coles brand products in 2015.

Over the past five years, customer demand for free-range, organic, ethically-produced and sustainable produce has increased significantly and will increase further. Customers are using their purchasing power to send a clear message to food retailers and food producers, and it is just good business sense to cater to that growing demand. Those farmers and food businesses who do not respond to this consumer demand will find that they become less and less profitable. Smart food producers and businesses who do will reap the rewards. I congratulate Coles on its leadership in this area and for its approach to ethical and sustainable food production.

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