Woolies denies sending spy after farmers oust employee

Farmers have accused a supermarket giant of trying to pull the wool over their eyes, alleging a Woolworths employee attended a conference to gather more than produce.

An employee of the supermarket chain was kicked out of the NSW Farmers Horticulture meeting on Monday after failing to disclose who they were despite repeated opportunities to do so, according to NSW Farmers.

NSW Farmers Horticulture Committee chair Jo Brighenti-Barnard was overseeing proceedings when sensitive grower information was being discussed.

She described the actions as underhanded and that it felt like corporate espionage.

"Once we discovered they did work for Woolworths and didn't identify themselves we thought 'what are they actually doing there, why not be open and honest?'," she told AAP.

"We did ask the whole room if someone was here from any of the supermarkets and no one put their hand up."

Woolworths said it wasn't aware the employee was attending but called the incident "an unfortunate misunderstanding".

"This team member works in our technology team and has no contact or relationship with our commercial buying teams," Woolworths said in a statement.

"This appears to be an unfortunate misunderstanding, and while we are not aware of what was discussed - or by whom - we want to provide the strongest reassurance there will not be any repercussions for suppliers who spoke at the event."

She has been formally directed not to share any information she heard at the conference with anyone at the company, it said.

Suppliers who had a complaint or concern were encouraged to raise it with the supermarket giant or confidentially through its whistleblower program, "Speak Up".

The woman had attended in a private capacity as "a university student involved with a startup incubator that's looking to create an app to support farmers".

She thought it would be a good opportunity to connect with farmers to help inform the app's development, Woolworths said.

"She informed the organisers of this when requesting to attend the event, and was given permission to do so," it said.

It comes against a backdrop of heightened tensions between farmers and supermarket giants, mainly Coles and Woolworths, as they argue over fair pay for produce.

The government will impose a mandatory code of conduct for how supermarkets treat suppliers after a review of the grocery sector.

In June NSW Farmers Horticulture Committee chair Jo Brighenti-Barnard said producers were afraid of the repercussions of criticising the supermarkets.

"For too long farmers have been afraid to speak out because of the sheer might of these two big supermarkets."