The Western Australian Farmers' Federation says the Trade Practices Act must be overhauled or consumers will face food shortages and increased prices.
WAFarmers' president Trevor De Landgrafft says too much blame has been placed on the drought for the current food supply situation, and not enough on supply chain discrepancies.
"Despite the drought that has been occurring in Western Australia, complete supply chain profitability is the major contributor to food shortages," he said.
"Twelve to 24 months ago farmers were forced to make a decision to reduce production due to a lack of profitability and sustainability in their operations.
"This has now resulted in the unfortunate situation that consumers are currently facing."
Some industries being affected include dairy, horticulture, red meat, and grains.
However, Mr De Landgrafft said the chicken meat industry is not facing such significant supply shortages, due to its short supply chain and ability for increased costs to be passed through the supply chain quickly.
"Supermarkets must ensure that the needs of the whole supply chain are considered at all times," Mr De Landgrafft said.
WAFarmers believes that in order to prevent this situation from prolonging itself, the TPA must be changed.
"Within the Trade Practices Act, unconscionable behaviour must be reviewed to ensure the interests of all supply chain members is achieved," he said.
"Without such a review, it is likely that we will continue to see price spikes coinciding with short supplies, with consumers missing out."
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