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How Supermarket Policies Could Affect Childhood Poverty

How Supermarket Policies Could Affect Childhood Poverty

The Green Institute links supermarket profits to the cost of feeding children in poverty, while related proposals aim to make essential groceries cheaper.

MoneyOctober 19, 20264 min readHow Sureno writes this

The short version

  • A Green Institute analysis says Coles and Woolworths’ supermarket divisions earned a combined $5.3 billion in 2025–26, compared with an estimated $4 billion annual food bill for children in poverty. 1
  • The analysis argues those profits could pay for children’s food, but the source does not describe a funded or operating programme. 1
  • The Green Institute has separately proposed a government-owned grocery business, Fair Go Grocers, intended to compete on prices. 2
  • The Victorian Greens have proposed a 10-store public supermarket trial and new price-setting powers for some essential groceries. 3

What does the report say Coles and Woolworths could do?

A Green Institute analysis compares the supermarket divisions’ combined $5.3 billion profit in 2025–26 with an estimated $4 billion annual cost of providing food to children living in poverty. It argues that the companies’ profits could cover that food bill, with some money remaining. 1

The figures depend on estimates. The report’s coverage cites the Smith Family’s estimate that 1.2 million children and young people are living in poverty, while noting that official counts differ. It also cites Finder’s estimate of $3,305 in annual food costs for a child. These are figures reported by the source, not a universally agreed count or cost. 1

Are Coles and Woolworths already funding food for children?

The available report does not say that either company has committed to fund a programme. It presents a calculation of what the profits could cover, rather than a confirmed plan for collecting money and getting food to children. 1

Important practical details are not supplied, including who would qualify, what food would be provided, and how the support would reach families. The article also notes that the supermarket companies say their margins are falling, but the provided material does not give enough information to assess that statement in detail. 1

What is the Fair Go Grocers idea?

Fair Go Grocers is a Green Institute proposal for a publicly owned grocery chain. National Seniors Australia’s account says the plan would have the federal government acquire 200 existing stores and three distribution centres, then construct 424 stores and 10 distribution centres over five years. The proposed chain aims to win 20% of the supermarket market. 2

The Green Institute estimates the chain could sell selected essentials for 30% less than Coles and Woolworths. It also projects an average saving of 22% per shopping trip, or $3,134 a year for a household of four. These are forecasts for a proposed business, not measured savings from an existing chain. 2

This proposal focuses on grocery competition and prices. It is distinct from the report’s calculation about using supermarket profits to meet children’s food costs. 12

What are the Victorian Greens proposing?

The Victorian Greens have proposed a trial of 10 publicly owned local supermarkets, split between Melbourne and regional areas. The party says the stores would offer essential groceries at prices 30% below those of major supermarkets and would include locally sourced and seasonal products. 3

The proposal also calls for the Essential Services Commission to set maximum prices for selected essential groceries and minimum prices paid to farmers for some products. The supplied source describes a party plan; it does not say these stores or powers are already in place. 3

What could these proposals mean for families?

A food-support programme could address children’s food needs directly if it were established and reached the families it intended to help. Public supermarkets or price controls, if implemented as proposed, could instead aim to lower the cost of groceries more broadly. 123

The sources do not provide evidence of actual savings or outcomes from these proposals. They describe different approaches: using profits to fund food, creating a national public retailer, and testing public stores and grocery price rules in Victoria. None is reported here as an implemented solution to childhood poverty. 123

What we don't know yet

  • Whether Coles or Woolworths would take part in or fund a food-support programme. 1
  • How any proposed food assistance would be delivered, who would qualify, and what it would provide. 1
  • Whether the Fair Go Grocers proposal or the Victorian trial will proceed, and what prices they would achieve in practice. 23
  • What effects the proposals would have on families, farmers, workers and existing retailers. 23

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Questions people ask

Could Coles and Woolworths profits pay for food for children in poverty?

The Green Institute analysis says the two supermarket divisions earned $5.3 billion in 2025–26 and estimates an annual food bill of about $4 billion for children in poverty. It argues the profits could cover that amount, but does not report an agreed programme. 1

How many children in Australia are living in poverty?

The report’s coverage cites a Smith Family estimate of 1.2 million children and young people, or one in six nationally. It notes that official figures differ, so the source does not give one agreed figure. 1

What is Fair Go Grocers?

Fair Go Grocers is a proposed publicly owned grocery chain from the Green Institute. The plan includes acquiring existing stores and distribution centres, building more, and aiming for a 20% share of the supermarket market. 2

Would government supermarkets make groceries cheaper?

The Green Institute estimates Fair Go Grocers could sell selected essentials for 30% less and reduce an average household shopping bill by 22%. Those are projections, not savings demonstrated by an operating chain. 2

What do the Victorian Greens want to do about grocery prices?

They propose a trial of 10 publicly owned supermarkets and a role for the Essential Services Commission in setting limits on prices for some essential groceries. Their plan also proposes minimum prices for some products paid to farmers. 3

Sources

  1. Supermarket giants could solve childhood poverty with one major fix, report finds | Nine.com.au — Nine.com.au, 2026-10-18
  2. Should the government sell groceries? — National Seniors Australia
  3. Vic Greens Plan Public Supermarkets to Cut Essential Prices — Mirage News

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