Horticulture Code of Conduct needs "significant" changes: ACCC

A report by the Australian Competition and Consumer Commission (ACCC) has highlighted the Horticulture Code of Conduct as an area of particular concern in the horticulture and viticulture industries.

The report documented the findings from a series of workshops held around regional Australia, which examined competition and fair trading issues facing growers and the broader industries.

ACCC Commissioner Mick Keogh said that despite the diversity of markets in horticulture and viticulture, there were a number of common concerns raised by stakeholders, including:

• the ineffectiveness of the current Horticulture Code of Conduct;
• concerns about late and non-payment of growers by wholesalers;
• a fear of raising complaints due to concerns about retribution;
• uncertainty in contracting practices across both industries;

“It is clear that the Horticulture Code is not achieving its aims and we believe that significant changes to the code are required,” ACCC Deputy Chair Michael Schaper said.

“The code needs to have greater coverage, through the inclusion of pre-2006 agreements, and penalties and infringement notices should be available for breaches of the code to encourage widespread compliance.”

The report identifies a number of areas in which the ACCC will be conducting further work in both industries, including examining allegations of late payments, interactions between growers and retailers under the Food and Grocery Code and assessing standard form contracts across both industries to promote compliance with the upcoming business-to-business unfair contract term law.

“There are also a number of contracting and competition issues in the viticulture industry that require further consideration and the ACCC’s Agriculture Unit will be looking at these in greater detail,” Keogh said.

The ACCC has been provided with additional funding of $11.4 million over four years to establish an Agriculture Unit that will conduct investigations and engagement in rural and regional areas.

Industry group AUSVEG welcomed the ACCC report, with spokesperson Jordan Brooke-Barnett saying, “There are a range of long-running competition issues which continue to affect our sector, including issues arising from power imbalances in trading relationships between growers and their buyers, and we’re eager to continue working with the commission’s Agriculture Consultative Committee to help create a level playing field for growers.

“The ACCC’s report suggests that many growers continue to be concerned by threats of blacklisting or ‘trading holidays’ as retribution for making complaints about unfair treatment. It’s clear that there’s more work to be done to protect growers and ensure they feel safe in making complaints.”

The report is available here.