The new Horticulture Code of Conduct came into force on April 1. The new Code was developed after a major independent review and months of negotiation with the Australian Government and the wholesale sector.
Overall, Growcom is happy with the new Code as it resolves many major issues which prevented widespread uptake of the previous Code. Most notably is the inclusion of Civil Penalties that shows the new code has some actual teeth.
The biggest change the new Code introduced is all transactions in the wholesale markets will now be covered regardless of existing trading relationships. This will require all contracts to be compliant with the new Code by April 2018 and all transactions must be made under a Horticulture Produce Agreement (HPA).
The purpose of the Code is to improve transparency, not obstruct normal healthy business relationships. It is for this reason that additional flexibility has been included to reflect what happens on the market floor. Growcom still has some concerns with this hybrid model of trading additional information requirements alongside the requirement to act in good faith. However, the financial penalties built into the Code should provide additional protection for growers.
Growcom continues to work closely with the ACCC to help develop education materials to ensure our growers understand their rights and obligations under the new Code and have the knowledge to develop an HPA template.
Growcom believe this new Code represents an opportunity for growers and the wholesale sector to work closely together to ensure our members all benefit from the protections built into the Code but also understand the flexibility it brings to the table. Growcom is confident that the new Code will foster long-term positive trading relationships in the marketplace to prosper and give growers the tools to develop new trading relationships on fair terms.
Senator Ruston and her team should be commended for their ongoing input and interest in brokering a reasonable outcome for both growers and wholesalers for the benefit of the sector as a whole.