WOOLWORTHS has hit back at claims it imposed a mandatory 40c-per-crate levy on growers to pay for its new Jamie Oliver marketing campaign.

Independent Senator Nick Xenophon and AusVeg acting chief executive William Churchill held a press conference outside Woolworths in Camberwell this morning to bring the allegations to light, despite not having contacted Woolworths prior to this.

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Woolworths spokesman Russell Mahoney said it was disappointing that Senator Xenophon and AusVeg didn’t contact Woolworths.

“We could have explained that the contribution was entirely voluntary, how around half our suppliers chose to work with us on the campaign which benefits the whole fruit and vegetable industry and how participating growers are paying less than 2 per cent of the cost of a case of produce,” he said.

Mr Mahoney said 200 of its growers were approached to participate in the marketing strategy, which was voluntary, and of that only half opted to pay the levy.

“If there was any truth to this allegation, you wouldn’t think that half of our growers would be comfortable opting out,” he said.

Senator Xenophon and AusVeg alleged the levy would cost large growers up to hundreds of thousands of dollars, and smaller growers tens of thousands.

“Growers from around the country — who are unable to speak up out of fear of retaliation — have asked their industry body to bring this issue into the light,” Mr Churchill said.

“They don’t even have 40c a box to pay them.”

The marketing campaign began three weeks ago and will run for another three weeks.

Growers were only expected to pay the levy for the six weeks of the campaign.

“I don’t like that it’s been called a levy because that implies that it was compulsory when it clearly wasn’t. Half of the growers chose not to do it,” he said.

He insisted growers would not be penalised if they refused to pay the levy.

AusVeg said it written to the ACCC and calling for the consumer watchdog to immediately investigate the behaviour of Woolworths.

The ACCC said it could not comment on whether it had received or was investigating the complaint.

“Woolworths is demanding hundreds of thousands of dollars from individual growers around Australia to fund their new campaign ... on top of the 2.5 — 5 per cent fee growers are already required to pay Woolworths for them to market and promote their produce,” Mr Churchill said.

“AusVeg is alarmed at the way Woolworths is squeezing its suppliers for more cash and is outraged at the way that the company is behaving.

“Growers are not a piggy bank that can be raided when it suits the supermarkets.”

Mr Churchill said growers had not been given specifics about what the levy would be used for.

AusVeg said it had received complaints from dozens of growers around the country, but Mr Churchill said he could not reveal details in case it identified individual growers.

Mr Xenophon said growers were intimidated and frightened by the supermarket duopoly.

“Because Coles and Woolies have so much market dominance, growers don’t have the power to say no to them,” he said.

“They don’t have a choice. If half your business is with Coles or Woolies or both, if you displease them, you’re in real trouble, and they can unilaterally say, ‘this is what we’re going to charge you — take it or leave it’.”

Mr Xenophon said he objected to levies being placed on hard working growers to line the pockets of celebrity chefs.

Jamie Oliver was worth an estimated $261.5 million last year.

The opt-in period for the levy was in May, and growers who did not agree have since been “harassed” by Woolworths via email, Mr Churchill said.

“It's astounding for a company that posted a $1.32 billion net profit in February and employs 190,000 staff to be going back to already squeezed farmers and asking them to cough up more money to pay for promotions,” Mr Churchill said.

More to come.