Vegetable Growers today are celebrating the passing of a long awaited mandatory horticulture code of conduct.

“This is a great win for vegetable growers. With a mandatory horticulture code a more level playing field will evolve resulting in better performance across the industry,” Michael Badcock, AUSVEG Chairman said.

Last week vegetable growers completely rejected a voluntary code proposed by Minister Ian McFarlane during a working group in Canberra.

“It has been over two years in the making but the delivery today of the mandatory code has made the waiting worthwhile,” Michael said.

“On behalf of industry I would like to thank Minister McGauran for his commitment, foresight and support throughout this difficult process.

“The Howard Government has finally delivered on their election promise. However, it will take serious resources to implement the code and vegetable growers are looking forward to working with government, wholesalers and retailers to make the code a success,” Michael said.

A Horticulture Business Code between growers, wholesalers and retailers will lead to the introduction of a greater level of accountability and fairness within the horticulture industry.

“By encouraging good business practice, the code will reduce the current trend of growers avoiding the wholesale markets.   Because they know they will get a fair deal,” Michael said

“A targeted horticultural business code also helps growers because it is overseen by the industry itself which makes sure it remains focussed on delivering efficient outcomes.” he added.

Growers have long been calling for a mandatory code to oversee trading relations between themselves and their trading partners.

The reason is simple – despite forming the core link in the fruit and vegetable supply chain, growers have the least amount of power. They have been unable to get contractual clarity and effective dispute resolution systems.

While some growers have very good relationships with their buyers, there are common problems that stop the industry reaching its full potential and, in many cases, impede growers from earning a fair living.

Under a mandatory code, parties are obliged to participate and must follow the guidelines of the code and, if there are problems, participate in the prescribed dispute resolution mechanisms. 

These guidelines are not onerous responsibilities but common business practices that simply ensure fair trading.

“AUSVEG will continue working with Government to implement the horticulture code of conduct across the whole industry,” Michael said.