1.  Horticulture Code of Conduct

Following extensive lobbying from the Association and other industry players, the Federal Government approved a mandatory Horticulture Code of Conduct in Cabinet in September 2006. The mandatory Horticulture Code of Conduct (HCC) will oversee trading relations between growers and the buyers of their produce. The Code is set to be passed by Federal Parliament in late 2006 and implemented in 2007.

The Australian horticulture industry consists of approximately 18,000 growers and is valued at approx $6bill (GVP), roughly 15% of the total value of Australian agriculture and the second largest industry behind beef.  Of this total, 61% comprises fruit production and 39% vegetables. Nationally, in 2003-04, the fruit and vegetable wholesaling industry recorded estimated sales revenue of nearly $8.5 billion (accounting for an estimated 3 per cent of total wholesale revenue in Australia) and contributed $861.4 million to GDP. In that year, the industry was composed of 960 establishments, employing 14,374 people, who earned a total of $517.5 million (IBISWorld 2005).

The immediate challenge facing the Association in the final phase of development of the guidelines of the new Code is to ensure that the principles we have fought hard for form the basis of the draft Code are actually rigorously embodied in the finalized Code and the guidelines which expand and reinforce the legislation.
The Code is expected to be ready for implementation in early 2007. Ensuring that the Code is properly resourced for the purpose of promotion and education of industry will be the focus of the Association initially. The ongoing task will be to assist in the education of our own membership and in monitoring the practical implementation of the Code in the wholesale sector, particularly issues related to disputes and non-compliance.

The objectives for this priority area are:

• Provision of transparency and clarity (with respect to price, contract terms, status of the buyer, ownership and risk) as well as access to a simple, effective, expedient and inexpensive dispute resolution mechanism. 
• Increase awareness and education of the new code and its contents to growers in NSW.
• Monitor issues relating the enforcement of the new Code and dispute resolution.