The Australian Competition and Consumer Commission (ACCC) has dished out the first ever penalty under the 2017 Horticulture Code to a Sydney fruit and vegetable wholesaler.
Stuart Dickson Produce has been fined $10,500 for an alleged breach of the Horticulture Code, which was updated in 2017 to include penalties for non-compliance.
Stuart Dickson was issued with the infringement notice for allegedly trading with a grower in horticulture produce without having a written horticulture produce agreement (HPA) in place, according to the ACCC.
The company’s alleged non-compliance with the 2017 Horticulture Code came to light following an ACCC compliance check of 15 fruit and vegetable wholesalers.
“A wholesaler trading with growers without written HPAs increases growers’ commercial risks, as they do not have certainty regarding critical terms of trade, such as how their produce will be graded, the price they will get paid and when they will get paid,” ACCC deputy chair Mick Keogh said.
“Horticulture wholesalers have been required since 2006 to have written agreements in place with growers under the mandatory industry code, and they should be careful to ensure they understand their obligations under the Code. There is no good excuse for not having written agreements in place when this has been a requirement since 2006.”
The 2017 Horticulture Code applies to all growers and wholesalers trading in horticulture produce and replaced a previous code.
The ACCC says it worked with industry bodies to conduct education and awareness around the new Code’s requirements, including the fact that infringement notices could be issued prior to the 2017 Horticulture Code coming into full force on 1 April this year.
“Now that the compliance and education stage is complete, the ACCC will not hesitate to take enforcement action for breaches of the Code, including taking court action to seek penalties in the future,” Keogh said.
“We are continuing to consider a number of matters involving potential breaches of the 2017 Horticulture Code.”
In June, the ACCC initiated proceedings against one of Australia's largest potato and onion packers Mitolo Group over unfair terms in its contracts with potato farmers.
The ACCC said the company breached the Horticulture Code in its dealings with farmers.
