The New South Wales Farmers' Association congratulates the Federal Government on its Cabinet support for a Mandatory Code of Conduct for the wholesale horticulture sector.

New South Wales Farmers' Association Horticulture Committee Chairman Peter Darley says a mandatory code will provide basic minimum terms of trade principles to the industry without burdensome compliance costs.

"Today's Cabinet approval of a mandatory code follows a Federal Government election commitment for its introduction in October 2004 and is an extremely positive step in the right direction,' Mr Darley said.

"There have been a number of bodies working on this issue for several years and I thank Minister for Agriculture Peter McGauran for listening to the industry.

"The New South Wales Farmers' Association looks forward to Government and industry finalising the details of the Code and necessary regulatory amendments by the end of the calendar year.

"We have always said that this Code is the only option that will deliver transparency, contract clarity and effective dispute resolution to the horticulture sector.

"It's encouraging to see that the Federal Government has today recognised this need and acted upon it," Mr Darley concluded.

The New South Wales Farmers' Association would also like to recognise the work carried out by the National Farmers' Federation (NFF) on this issue.