ACCC identifies horticulture code breaches in Queensland

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from a Queensland horticulture produce trader. 

Atkinson Produce Pty Ltd, trading as Murray Brothers, has acknowledged it contravened the Horticulture Code of Conduct by trading under horticulture produce agreements and terms of trade that did not fully comply with the code.  Atkinson has also admitted that on some occasions it failed to agree prices in writing with growers, and may have inadvertently misled some growers about the compliance of documents.

The code is a mandatory industry code under section 51AD of the Trade Practices Act 1974.  It regulates trade in horticulture produce between growers and traders to ensure transparency and clarity of transactions.

The ACCC has accepted undertakings from Atkinson that, among other things, it will redraft its current agreements and terms of trade so that they comply with the code, and notify affected growers.  Atkinson will arrange, at its expense, a trade practices law seminar on the code for its management, employees and growers.

ACCC Chairman, Mr Graeme Samuel, reminded the industry that horticulture produce traders must make all efforts necessary to ensure their documentation and practices comply with the code.

"The code has been in effect for well over a year and the ACCC will not hesitate to act if it has concerns that a trader is not meeting all of their obligations."

For media inquiries to the ACCC Chairman, Mr Graeme Samuel, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520. 

For general inquiries, please call the Infocentre: 1300 302 502.

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Background

On 14 May 2007 the Horticulture Code of Conduct came into effect as a prescribed industry code of conduct under the Trade Practices Act 1974.

The purpose of the code is to regulate trading in the horticulture produce industry. The code encourages greater clarity and transparency in transactions between growers and wholesale traders by clarifying the responsibilities and obligations of each party.

The code requires that all traders—whether trading as agents or merchants—must prepare, publish and make publicly available a document that sets out the general terms and conditions under which they will trade with growers of horticulture produce. The code sets out the specific requirements for what must be included in the terms of trade document.

The code also requires a trader and grower to enter a written and signed horticulture produce agreement before they trade in horticulture produce with each other.  As an agreement between the parties the horticulture produce agreement can contain terms unique to the parties' situation. However, the code sets out the minimum requirements about what must be included in a horticulture produce agreement.

It is a breach of the code if growers and traders transact in horticulture produce without a signed horticulture produce agreement in place.