The Horticulture Code of Conduct is a mandatory industry code prescribed under the Competition and Consumer Act 2010. The Code aims to improve the clarity and transparency of trading arrangements between growers and traders in the horticulture sector. The Code provides a fair and equitable dispute resolution procedure for disputes under the Code or a horticulture Produce Agreement.
Who does the code apply to?
The Code applies to growers and traders. Horticulture growers and traders must comply with the Code. Traders can be either a merchant or an agent.
Growers and Traders of unprocessed fruit and vegetables
- A grower is the person who grows fruit and vegetables.
- A trader is an agent –a person who sells fruit and vegies on your behalf for a commission or fee.
- A trader is a merchant –a person who buys a grower’s fruit and vegetables to resell them.
- Growers who source produce off other growers to on-sell are acting as traders.
Horticulture produce is unprocessed fruit, vegetables (including mushrooms and other edible fungi), nuts, herbs, and other edible plants, but excludes nursery products.
The Code does not apply to purchases of horticulture produce for sale directly to consumers, for export, or processing.
The code in a nutshell
Requirements for Traders
To trade with a grower, a trader (wholesaler) must have:
1. Terms of Trade – standard indicative terms on which you are prepared to trade with a grower, and
2. Horticulture Produce Agreement (HPA) – contractual agreement to be agreed with each grower supplier.
The Code ONLY applies when a trader (wholesaler) is doing business with the actual grower of the horticulture produce being supplied. It does not apply to transactions where a trader (wholesaler) is sourcing produce from another trader.
Fore more information on Code requirements for growers, please click here.