THE Latrobe Valley's independent fruit and vegetable retailers have accused Coles of using "bullying tactics" in its move this week to heavily discount some fresh produce.
With fruit and veg being subject to the latest round of discounting by Coles, in response to an oversupply of produce this season, smaller retailers have called on consumers to choose wisely and "look at the bigger picture".
Price cuts to fruit and veg follow discounts applied to milk, bread and other products by Coles and Woolworths in the past year.
It is not yet known whether Woolworths will follow Coles' lead on fruit and veg, though a Moe retailer, who did not want to be named, told The Express Woolworths had so far maintained "fair prices" which meant "we can all pay our bills".
A Coles spokesperson claimed the discounting campaign had allowed it to provide farmers with a certain market for their product and that it had reached an agreed price with suppliers.
The Moe retailer, who was a farmer, disputed any claims of a "fair price".
"I think if you speak to farmers you will hear a different story...they (Coles) are using bullying tactics and screwing with the farmers," he said.
"I don't think the grower is getting much at all - Coles are just taking advantage of the glutton of produce in the market at the moment...you won't see bananas discounted because there is no oversupply," he said.
The retailer said he was concerned farmers might be being exploited in the current arrangements, which also disadvantaged smaller retailers.
"I don't think, overall, the prices are that cheap and, if people shopped around, they would see we are cheaper and our quality is better," he said.
"But if they advertise carrots at 94 cents a bag, well I have to pay (suppliers) 80 cents for a bag, I can't compete with that, and if I did I wouldn't be in business for too long."
"(Coles) just want to have a monopoly and they will put their prices up later and people don't know they will have to pay for it later," the retailer said.
Manny's Market owner Manny Manthos agreed the discounting campaign was an attempt by Coles to monopolise the market.
"They want a monopoly and to get rid of us," he said.
Mr Manthos urged consumers to "wake up and check every price", claiming "you will see that we can match any price".
"I know they do a lot of advertising but I want to explain to the public that they should get a pencil, write down every price, and they will see how much better we are," he said.
The Victorian Farmer's Federation has called on big supermarket chains to commit to an "ethical sourcing policy when dealing with Australian fresh food produce".
VFF president Andrew Broad said farmers would have "no problem with the latest cut-price strategy as long as they are being rewarded for their investment".
"Without sustainable business practices from our supermarkets that allow both parties to profit, growers will be forced out of business," he said.
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