Coles vows its canned fruit all Aussie

Supermarket chain Coles will replace imported canned fruit with Australian produce sourced from SPC Ardmona.

Supermarket Coles' private label canned fruit will all be Australian-grown from early next year. (AAP)

Supermarket giant Coles' private label canned fruit will all be Australian-grown from early next year.

Wesfarmers' grocery subsidiary has signed a deal with SPC Ardmona (SPCA) to source 100 per cent of its canned fruit from its Goulburn Valley growers in Victoria, replacing previously imported produce.

"This new offer, including the sourcing of 100 per cent Australian grown Coles brand canned peaches, pears and apricots from SPC Ardmona ... is a demonstration of Coles' commitment to local sourcing," Coles chief operating officer John Durkan said in a statement.

The deal comes eight weeks after rival Woolworths reached a similar house-brand agreement with SPCA, whose owner Coca-Cola Amatil earlier this year called for temporary tariffs on canned goods.

Canned fruit volumes from SPCA will rise by 600,000 kilograms a year, replacing fruit that had been previously sourced from overseas, and taking annual volumes to four million kilograms - or 300 truckloads.

SPCA managing director Peter Kelly hailed the new contract, which comes into effect from the November harvest season.

"This is a fantastic result for our passionate fruit growers and the Goulburn Valley community," he said.

But the arrangement comes as Australia's major supermarkets are accused of undercutting suppliers, with federal Small Business Minister Bruce Billson on Wednesday adding to the suggestions.

Coles said it had an "Australia-first sourcing policy".