Independent Review of the Horticulture Code of Conduct: Final Report 2015

The 2015 Independent Review of the Horticulture Code of Conduct, requested by the Treasury and conducted by Mark Napper and Alan Wein, provided several key recommendations aimed at improving the code’s effectiveness and ensuring fair trading practices within the Australian horticulture industry. Here are the main recommendations from the report:

1. Mandatory Written Agreements

Recommendation: The code should require all transactions between growers and traders to be governed by mandatory written agreements.- Rationale: Written agreements provide clarity and certainty regarding the terms of trade, reducing the potential for disputes and misunderstandings.

2. Inclusion of All Horticulture Produce

Recommendation: The code should apply to all horticulture produce, not just those specified in the current code.
Rationale: Expanding the scope of the code to cover all horticultural products ensures comprehensive protection for all growers and traders.

3. Clarification of Terms

Recommendation: Key terms within the code, such as “grower” and “trader,” should be clearly defined.
Rationale: Clear definitions help avoid ambiguity and ensure that all parties understand their roles and responsibilities under the code.

4. Transparency in Pricing

Recommendation: The code should require traders to provide transparent pricing information to growers.
Rationale: Transparency in pricing helps growers understand how prices are determined and ensures fair compensation for their produce.

5. Dispute Resolution

Recommendation: The dispute resolution process should be strengthened to provide a more efficient and effective mechanism for resolving conflicts. 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.“

Rationale: An improved dispute resolution process helps parties resolve issues promptly and fairly, reducing the need for costly and time-consuming legal action.

6. Training and Education

Recommendation: Training and education programs should be implemented to ensure that growers and traders understand their rights and obligations under the code.
Rationale: Education and training help ensure compliance with the code and promote fair trading practices.

 7. Record Keeping

Recommendation: The code should require both growers and traders to maintain accurate records of their transactions.
Rationale: Proper record keeping provides evidence in case of disputes and helps ensure transparency and accountability in trading practices.

8. ACCC Enforcement

Recommendation: The Australian Competition and Consumer Commission (ACCC) should be given greater powers to enforce the code and take action against non-compliant parties.
Rationale: Strengthening the enforcement powers of the ACCC ensures that the code is upheld and that breaches are dealt with effectively.

9. Regular Review of the Code

Recommendation: The code should be subject to regular reviews to ensure that it remains relevant and effective in addressing the needs of the horticulture industry.
Rationale: Regular reviews help identify and address emerging issues and ensure that the code evolves with changes in the industry.

10. Stakeholder Consultation

Recommendation: Ongoing consultation with industry stakeholders should be conducted to gather feedback and suggestions for improving the code.
Rationale: Engaging with stakeholders ensures that the code reflects the practical realities of the industry and addresses the concerns of all parties involved.