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Role of the Parties: Horticulture Code of Conduct

Review of the Current Process

An Independent Review of the Horticulture Code of Conduct, was conducted on behalf of the Treasury by Mark Napper and Alan Wein in 2015.  Read their full report here: Independent review of the mandatory Trade Practices (Horticulture Code of Conduct) Regulations.

The reviewers made significant findings about the nature of the dispute resolution processes in the Horticulture Code which have continued unchanged, even though the Code was “re-launched” in 2017.

In particular, the reviewers found that:

the current Horticulture Code dispute resolution process has become irrelevant, inappropriate and is largely not adopted by the parties in the wholesale horticulture sector.

The current process is too cumbersome and does not address the immediate concerns of the primary dispute issues that arise in the wholesale horticulture sector.

This was because the process fails to appreciate the dynamics of the wholesale horticulture sector. Concerns have been raised that an ad hoc dispute resolution process does not work due to the perishable nature of the produce, growers’ distance from market and that the processes can be detrimental to ongoing relationships.

It is clear that disputes which usually arise in the wholesale horticulture sector relate to:

  1. perceived produce quality
  2. timing of delivery of produce
  3. transparency of the market price and the end price paid by the trader to the grower, including deductions made by the trader
  4. late or non-payment to the grower.

 

Dispute resolution processes under the Horticulture Code, needed to be:

  1. quickly convened
  2. accessible in market
  3. independently undertaken by an expert
  4. binding on all parties.

 
It was recommended that the dispute resolution process used under the Horticulture Code should be based on a conciliation model instead of the current mediation model.

Mediation works best when the parties have equal resources, capacity to negotiate and where time to resolve the issue is not a major concern.

A conciliation model of dispute resolution for horticulture allows for a conciliator—whether an assessor, inspector, surveyor, arbitrator or independent expert—to provide parties with a same day, on market inspection, determination and report regarding the dispute.

As the ACCC points out, under the Horticulture Code of Conduct, growers and traders can choose any dispute resolution procedure, see Clause 38(1).

A dispute resolution procedure can also be described in the horticulture produce agreement, though the grower or trader can instead choose to follow the procedure described in the code.

On-line videoconferencing allows growers to have access to all the information relevant to a transaction and have the ability to negotiate on equal terms with market traders.

A Conciliation-Adjudication process for dispute resolution under the Horticulture Code provides a quick and final result.

An Independent Review of the Horticulture Code of Conduct, which examined the role of the parties, was conducted on behalf of the Treasury by Mark Napper and Alan Wein in 2015.

The reviewers made significant findings about the nature of the dispute resolution processes in the Horticulture Code which have continued unchanged, even though the Code was “re-launched” in 2017.

In particular, the reviewers found that:

the current Horticulture Code dispute resolution process has become irrelevant, inappropriate and is largely not adopted by the parties in the wholesale horticulture sector.

The current process is too cumbersome and does not address the immediate concerns of the primary dispute issues that arise in the wholesale horticulture sector.

This was because the process fails to appreciate the dynamics of the wholesale horticulture sector. Concerns have been raised that an ad hoc dispute resolution process does not work due to the perishable nature of the produce, growers’ distance from market and that the processes can be detrimental to ongoing relationships.

It is clear that disputes which usually arise in the wholesale horticulture sector relate to:

  1. perceived produce quality
  2. timing of delivery of produce
  3. transparency of the market price and the end price paid by the trader to the grower, including deductions made by the trader
  4. late or non-payment to the grower.

 

Dispute resolution processes under the Horticulture Code, needed to be:

  1. quickly convened
  2. accessible in market
  3. independently undertaken by an expert
  4. binding on all parties.

 
It was recommended that the dispute resolution process used under the Horticulture Code should be based on a conciliation model instead of the current mediation model.

Mediation works best when the parties have equal resources, capacity to negotiate and where time to resolve the issue is not a major concern.

A conciliation model of dispute resolution for horticulture allows for a conciliator—whether an assessor, inspector, surveyor, arbitrator or independent expert—to provide parties with a same day, on market inspection, determination and report regarding the dispute.

As the ACCC points out, under the Horticulture Code of Conduct, growers and traders can choose any dispute resolution procedure, see Clause 38(1).

A dispute resolution procedure can also be described in the horticulture produce agreement, though the grower or trader can instead choose to follow the procedure described in the code.

On-line videoconferencing allows growers to have access to all the information relevant to a transaction and have the ability to negotiate on equal terms with market traders.

A Conciliation-Adjudication process for dispute resolution under the Horticulture Code provides a quick and final result.

The Problems

It is clear that disputes which usually arise in the wholesale horticulture sector relate to:

  1. perceived produce quality
  2. timing of delivery of produce
  3. transparency of the market price and the end price paid by the trader to the grower, including deductions made by the trader
  4. late or non-payment to the grower.

 

Dispute resolution processes under the Horticulture Code, needed to be:

  1. quickly convened
  2. accessible in market
  3. independently undertaken by an expert
  4. binding on all parties.

 
It was recommended that the dispute resolution process used under the Horticulture Code should be based on a conciliation model instead of the current mediation model.

Mediation works best when the parties have equal resources, capacity to negotiate and where time to resolve the issue is not a major concern.

A conciliation model of dispute resolution for horticulture allows for a conciliator—whether an assessor, inspector, surveyor, arbitrator or independent expert—to provide parties with a same day, on market inspection, determination and report regarding the dispute.

As the ACCC points out, under the Horticulture Code of Conduct, growers and traders can choose any dispute resolution procedure, see Clause 38(1).

A dispute resolution procedure can also be described in the horticulture produce agreement, though the grower or trader can instead choose to follow the procedure described in the code.

On-line videoconferencing allows growers to have access to all the information relevant to a transaction and have the ability to negotiate on equal terms with market traders.

A Conciliation-Adjudication process for dispute resolution under the Horticulture Code provides a quick and final result.

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