The views of Tasmanian horticulture and viticulture farmers have helped to inform a report into the nation’s Horticulture Code of Conduct by the Australian Competition and Consumer Commission (ACCC).
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The ACCC held a regional workshop in Devonport on September 1 to gauge the feelings of the region’s farmers about the code. It was attended by ACCC Agriculture Commissioner Mick Keogh.
A report into those insights was released by the ACCC following the regional visits to Devonport, Shepparton, Toowoomba, Bunbury, Griffith and Murray Bridge.
The report said each of the six regional workshops raised consistent and similar concerns with the current state of the Horticulture Code.
The key issues raised included:
- the ineffectiveness of the Horticulture Code of Conduct
- timing of payments to growers
- imbalances in bargaining power
- contracting practices
- the influence of major retailers
- the voluntary Australian Wine Industry Code of Conduct
- fears about raising complaints
The report found growers, representatives and wholesaler representatives were all very critical of the current Horticulture Code of Conduct.
The report noted a Tasmanian grower representative suggested there had been no genuine change in industry practice since the code’s introduction.
The ACCC did not find any growers who were happy with the code in its current form and feedback suggested noncompliance with the code was so common that growers did not consider it worthwhile to report any breaches.
The report recommended the code be updated to apply to pre-December 2006 contracts so it has greater coverage and meets its original purpose to allow for penalties and infringement notices to be issued for breaches of the code.
It also welcomed a proposal to introduce and obligation for parties to act in good faith into the code. The report noted the effectiveness of the code would be diminished if all parties did not buy in to the code fully.
In the horticulture industry, an issue that was consistently raised by growers was late or nonpayment by wholesalers.
The timing of payment is also an issue in the viticulture industry, but in a substantially different way. Under many wine grape supply agreements, growers only receive an initial payment some months after their grapes are delivered and it can take up to 12 months before full payment is received.
The ACCC is also assessing allegations of late payments to growers to determine whether the alleged conduct raises concerns under the Horticulture Code or the broader provisions of the ACL.
The report was released on October 28.
Caitlin Jarvis
I have worked in the Tasmanian digital/print media for 11 years, spanning two newsrooms. I have developed a keen interest in agricultural, development and education news, as well as issues-based long-form journalism. Contact me at caitlin.jarvis@examiner.com.au
I have worked in the Tasmanian digital/print media for 11 years, spanning two newsrooms. I have developed a keen interest in agricultural, development and education news, as well as issues-based long-form journalism. Contact me at caitlin.jarvis@examiner.com.au
