Payment terms from market wholesalers are meant to be agreed and...

Payment terms from market wholesalers are meant to be agreed and binding (depending if the wholesaler is set up as a wholesaler or merchant) under the horticulture code of contact. Most are 30 days from delivery.

Woolies and Coles now have produce suppliers on such a tight margin that extended payment terms might just let the cat out of the bag. If you read the Coles annual report the CEO of Coles is quite proud of the fact that they have kept food prices significantly below inflation.

This has simply led to an equity transfer from farms to the customer, and end consumer.

It will turn. Maybe it already is.

Especially with the banks now hesitant to increase exposure in agriculture atm. One of their main concerns.... cashflow and payment terms.

Woolies and Coles have consolidated their produce supply base down, down, down. 5% now supply 90%. They are big enough to start looking elsewhere. Cashflows go negative quite quickly when you are a major supplier and your customers keep wanting more for less. And if you can't supplement it with debt or equity...

Meat and milk have looked overseas. I'd suggest produce might be next.