Growcom calls on the Federal Government to implement the recommendations from the review of the Horticulture Code of Conduct, as an election promise. We ask the Federal Opposition to similarly back this position, as a bipartisan obligation to the industry.
After discussions with growers, we are anxious that the recommendations be implemented in their entirety. The recommendations address transparency of transactions between growers and wholesalers and it would be concerning if some recommendations were not implemented or watered down.
Growcom is willing to move from its long held position of requiring clear differentiation in the definitions of merchant and agent, provided that the significant additional risk borne by growers and the potential for reduced transparency is addressed through the other recommended measures. We support:
- A standard form Horticulture Produce Agreement.
- Good faith and deeming provisions.
- The removal of the pre-code contract exemption.
- The proposed dispute resolution provisions.
- Real time price reporting.
With regard to the last dot point, we support the recommendation to investigate options for implementing a real time price reporting mechanism to provide accurate and current price information across the horticulture supply chain with initial financial support from the Australian government.
If the objective is transparency, an effective price reporting mechanism could deliver this with minimal regulatory burden and overcome the inherent market failure the code seeks to address. From our perspective it would be an economically prudent investment from the Australian Government and align with the stated objective of easing the regulatory burden. It will ensure sound investment decisions in the production process based on an accurate knowledge of current prices based on supply and demand.
