IN the first case decided under the new national Horticulture Code of Conduct, the Federal Court in Darwin has found a horticulture merchant failed to comply with the code's pricing requirements when dealing with two mango growers.

The Australian Competition and Consumer Commission said the merchant, Grove & Edgar, will write to all the growers it trades with and inform them of “its commitment to comply with the code and pay court costs of $7,500.”

Federal Court Justice Reeves said code of conduct had been in place for about 18 months and the case would serve to reinforce the need for agents and growers to familiarise themselves with its terms and ensure they comply with it.

ACCC Chairman, Graeme Samuel, said the ACCC took the case to court to ensure that growers have certainty about the price they receive for their produce.

"Growers across Australia are vulnerable when they send their produce over long distances to capital cities,” Mr Samuel said.

"Despatching perishable items over such a distance is fraught because it is very difficult to quickly resolve business and pricing disputes if they arise.

The code is designed to protect growers and to enable them to make informed choices about which merchant is able to provide them with the best deal."

In June the ACCC filed proceedings in the Federal Court in Darwin alleging

Grove & Edgar had failed to agree in writing the price to be paid for the produce of some Northern Territory mango growers either before or immediately upon delivery of their mangoes during the 2007 season.

"It is important that all horticulture produce merchants and agents recognise and abide by their obligations under the code," Mr Samuel said.

"The code was introduced as a mandatory code to ensure greater clarity and commercial transparency in transactions between growers and wholesale traders by clarifying the responsibilities and obligations of each. An amount to be paid for produce must be provided to growers. It is not acceptable for merchants to provide a range of price to growers."

Since the code's introduction, the ACCC has conducted education initiatives within the industry for both traders and growers and distributed publications in several languages.

"The ACCC has also accepted court-enforceable undertakings from a number of traders in relation to conduct which has not complied with the code,” it said.

"The ACCC will continue to monitor the industry closely and will assess complaints it receives. Growers are encouraged to be aware of their rights under the code and seek compliance by the trader in the first instance," Mr Samuel said.

"However, growers should not hesitate to contact the ACCC if they consider traders are not complying with the code."

 

*This news is a quote from the「WeeklyTimesNow」.