Coles has revealed its plans, and Woolworths is bound to follow that lead, making critics wonder how they can afford it, and what's next.

Coles is planning to cut fresh food prices by up to 50 per cent, and never before has the price of fruit and vegetables been slashed like this.

It's a highly sensitive commercial move, and a retail strategy that's set to raise the bar of competition even higher.

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“We've seen sales happen before, we've seen super duper specials before, but nothing like the discounting we are about to see,” AUSVEG Communications and Public Affairs Manager William Churchill said.

“After twelve months of planning, we can finally reveal our twelve super specials,” Coles General Manager of Fresh Produce Greg Davis said.

It is new battle ground for supermarket supremacy in 2012.

“Each week, on top of our normal fruit and veg promotions, which are already great value, we'll be launching twelve deep discount promotions,” Davis said.

According to Davis, “there has never a better time to save on fresh produce at Coles.”

“Carrots at the moment, are $1.15. When we go on super special, they'll be 95 cents - an incredible price. In the marketplace you'd see them normally at $1.45,” he said.

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Farmer John has worked with Coles for over fifteen years, supplying cauliflower, broccoli, lettuce and Asian vegetables.

“Our crops are basically jumping out of the ground. We've got excess volume,” John said.

A glut means he needs to shift large volumes of produce quickly.

“The perfect storm delivers over supply unfortunately, and Coles have been instrumental in working with us and recognising that we've got over supply,” John added.

But according to AUSVEG, most suppliers have been kept in the dark about the new cut-price strategy.

“So far none of the growers that I've spoken to have told me that they're aware of this new promotional strategy,” Churchill said.

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He believes some growers with an oversupply will win, but others may struggle.

“It is really risky from a grower’s point of view. If they have to take a hit of 50 per cent to their business, there wouldn't be a sustainable practice. So what we need to see is Coles put their cards on the table and tell us where they're making these cuts,” he said.

“We're investing prices in prices as well, but our growers are working with us to plan our crops, to ensure that we've got certain year-round volumes. We buy in such huge volumes, it brings down the cost of the produce, so customers benefit and growers benefit, because we can move stock really quickly,” Greg said.

Greg says he does not think there'll be any resistance from growers when it comes to cutting the price at the gate? “I think our growers will be really happy that we can move lots of stock really quickly,” Davis said.

Price cuts and products will vary between states, with the first round of cuts beginning tomorrow morning.

Using tomorrow's new prices, a trolley of twelve super discounted fruit and vegies in the Melbourne suburb of Malvern will cost just over $29.

At the Woolworths store in the same suburb you'll pay $15 more. At nearby independent grocer Top Shelf Fruits - where the fruit is handpicked from the markets each morning - it'll cost $20 more.

Owner Joe Russo won't compete on price, and he fears smaller grocers who try to price match will not survive.

“I will not be able to compete, not 50 per cent, definitely not. A lot of the smaller green grocers will fold at the end,” he said.

Fresh produce is the last remaining area where Woolworths is perceived as having the upper hand on Coles. But as of tonight, all that could change. A new Coles commercial will be launched as they try to spruik their fresh credentials.

Today we discovered how fruit and vegie prices can vary, simply depending on the suburb in which you live.

In the Sydney suburb of Revsby - where Woolworths has no other competition - you'll pay a premium for fresh produce - for example, $3.98 for a kilo of cucumbers, and the same for a kilo of tomatoes.

A few kilometres away in Bankstown - where Woolworths competes with dozens of grocers - it'll cost you just $2.50 for cucumbers, and just $1.85 for a kilo of the same tomatoes.

In a statement from Pat McEntee, General Manager of Woolworths Fresh Food, Woolworths conceded the price variations reflected the level of competition. "The recent prices in Bankstown reflect strong competition in the area and that's a good thing for customers”.

If Coles paves the way with a new range of price cuts, there's no doubt Woolies will try to follow.

“Customers will be incredibly happy with the fact that prices are cheaper than they've ever been,” Davis concluded.