Bunnings Signs Agreement to Improve Supplier Relations After Growers Raise Concerns
Bunnings has agreed to a new set of principles aimed at addressing concerns over its treatment of plant suppliers, following revelations made during the Australian Competition and Consumer Commission’s (ACCC) supermarket inquiry last year.
The agreement comes after some growers described feeling “terrified” to raise complaints, and industry body Greenlife Industry Australia (GIA) reported that up to 20% of suppliers were operating at a loss.
Addressing the Power Imbalance
GIA CEO Joanna Cave said the deal marks a major shift in how suppliers are treated, noting the significant power imbalance between Bunnings — a large, publicly listed company — and smaller, independent growers.
“They lacked contracts, they couldn’t negotiate terms,” Ms Cave said. “A lot of things in the relationship were introduced unilaterally by Bunnings.”
The federal government had warned Bunnings that it needed to act swiftly or risk facing regulation. Cave described the new agreement as a “watershed moment” for the industry, offering commercial certainty to growers.
“It won’t solve all the problems, and it’s a voluntary agreement,” she said. “But we’re now working with Bunnings, not against them.”
Skepticism Among Some Growers
Despite the move, not all growers are confident it will lead to lasting change. Nursery owner John Van Der Lay, with five decades of experience in the industry, said he no longer supplies Bunnings due to past mistreatment.
“A leopard doesn’t change its spots,” Mr Van Der Lay said. “What happened previously could continue.”
Bunnings Responds
Bunnings Group Managing Director Michael Schneider said the company is committed to improving transparency and accountability in its dealings with growers.
“There is clarity on buying operations, inventory planning, and how we handle concerns,” Mr Schneider said.
“This is a really important first step in creating greater collaboration with growers.”
The new principles will take effect in the coming weeks. The first formal review is scheduled for February 26 next year, and annual reviews will follow.
