Horticulture Code of Conduct

The Horticulture Code of Conduct is a mandatory industry code under section 51AE of the Competition and Consumer Act 2010. Read the full legislative code here: Horticulture Code 

The Horticulture Code was originally established in 2007 to provide clarity and transparency of transactions between growers and traders of fresh fruit and vegetables – but proved ineffective. An independent review of the Horticulture Code was undertaken on behalf of the Treasury by in 2015 and an ACCC consultation with stakeholders in 2016. As a result the Horticulture Code was updated and relaunched in April 2017.

Key features of the revised Horticulture Code of Conduct:

1. Written Agreements: The code mandates that all trade in horticulture produce between growers and traders must be conducted under written Horticulture Produce Agreements (HPAs).

2. Clarity and Transparency: The code provides clear rules regarding the terms of payment and the transparency of transactions. This includes clear terms for price determination and the timing of payments.

3. Dispute Resolution: The Horticulture Code of Conduct (clause provides that parties to a dispute can use any dispute resolution procedures they choose to resolve horticulture disputes that arise between them.

4. includes a dispute resolution process to manage disagreements between growers and traders. This process includes an initial phase of negotiation, followed by mediation and, if necessary, arbitration.

5. Record Keeping: The Code requires traders to provide growers with detailed information about how their produce has been handled, including price information and reasons for produce rejections.

Clause 16 of the Code sets out the minimum requirements to be specified in the Horticulture Produce Agreement. These include:

 (a) whether the trader is trading as an agent or a merchant under the agreement; and

 (b) any requirements the trader has in respect of delivery of horticulture produce to the trader by the grower; and

 (c) any circumstances, for the purposes of paragraph 22(2)(b), in which the trader may reject horticulture produce delivered by the grower; and

 (d) the period, for the purposes of subclause 22(4), within which the trader must give the grower reasons for a rejection of horticulture produce delivered by the grower; and

 (e) if the trader has insurance for horticulture produce covered by the agreement:

 (i) the extent to which the produce is covered by the agreement; and

 (ii) the maximum amount of insurance cover provided by the trader’s insurance policy in respect of claims that may be made in relation to the produce; and

 (f) the process for varying the agreement; and

 (g) if the agreement is only to operate for a limited time—the term of the agreement; and

 (h) any quality and quantity requirements relating to horticulture produce covered by the agreement; and

 (i) the FreshSpecs Produce Specifications, or other specifications, that will be used to determine the quality of the produce; and

 (j) how the trader deals with horticulture produce, provided by the grower under the agreement, that does not meet the quality or quantity requirements (if any) specified in the agreement; and

 (k) if the trader intends to pool the horticulture produce with other produce:

 (i) the quality requirements relating to the produce to be pooled; and

 (ii) the specifications that will be used to determine the quality of the produce to be pooled; and

 (l) the payment period, for the purposes of subclause 35(2), for the delivery of horticulture produce under the agreement; and

 (m) the reporting period for the agreement; and

 (n) the statement period for the agreement; and

 (o) the contact details of the person that the grower should contact in the event of a dispute with the trader under the agreement or this code; and

 (p) the contact details of the person that the trader should contact in the event of a dispute with the grower under the agreement or this code; and

 (q) the process for terminating the agreement.