Your Responsibilities Under the Horticulture Code of Conduct
The Horticulture Code of Conduct (the Code) is a mandatory industry code that regulates trading between growers and traders (agents and merchants). It ensures fair, transparent, and legally compliant trading arrangements.
The ACCC enforces the Code and conducts regular compliance checks and audits to ensure traders meet their obligations. Failure to comply can result in significant penalties.
For more details, visit: www.accc.gov.au/hortcode
What is the Horticulture Code?
The Code applies to the sale of unprocessed horticulture produce, including fruit, vegetables, nuts, and edible fungi. Its key objectives are to:
- Increase transparency in trading arrangements
- Clarify the obligations of growers and traders
- Provide a clear process for resolving disputes
Who Must Comply With the Code?
The Horticulture Code applies to ALL wholesalers (traders) who acquire produce directly from growers, whether by buying from them or selling on their behalf. This applies regardless of where the trader operates or how they conduct their business, including:
- Wholesalers operating from central market selling floors
- Secondary wholesalers/providores
- Brokers, aggregators, pack houses
- Wholesalers outside of central markets
- The only exceptions are businesses purchasing produce for their own retail sale, processing, or export.
Agents – Sell produce on behalf of a grower and charge a commission or fee. They never own the produce.
Merchants – Buy produce from growers and resell it to other businesses.
Trader Obligations Under the Code
Your responsibilities depend on whether you act as an agent or a merchant, but in general, you must:
- Publish your Terms of Trade and make them easily accessible
- Use a Horticulture Produce Agreement (HPA) that meets Code requirements
- Follow the agreement’s terms when dealing with growers
- Provide growers with statements showing how prices are determined
- Keep required records for a minimum of six years
- Use the dispute resolution process outlined in the Code or your HPA
Failure to meet these obligations can result in financial penalties and enforcement action.
Enforcement and Penalties
The ACCC monitors compliance with the Code and has issued penalties for breaches, including:
- Failing to publish Terms of Trade – Penalty paid $13,750
- Failing to specify price details in grower statements and trading without a HPA – Penalty paid $24,850
- Trading without HPAs – Penalty paid $62,600
- Failing to provide Terms of Trade and trading without HPAs – Penalty paid $43,150
With random ACCC audits expected to continue in 2025, traders must ensure they comply with the Code to avoid potential penalties.
Traders should review their agreements and documentation to ensure compliance before any ACCC audit.
Growers’ Questions for Traders – Be Prepared
The ACCC has released Growers’ Questions for Traders, a resource designed to help growers understand their rights and ask traders key questions about:
- Terms of Trade – Where they are published and how to access them
- Trading arrangements – Whether a trader acts as an agent or merchant
- HPA requirements – Ensuring agreements are in place before trading
- Pricing transparency – What must be included in grower statements
- Rejected produce – How it is handled and documented
This guide has been sent to grower organisations and will be distributed publicly, including on social media. Traders should be aware of the information growers are receiving.
The full Growers’ Questions for Traders guide is available at: www.accc.gov.au/hortcode
What Traders Should Do Now
- Check that your Terms of Trade are up to date and publicly available.
- Ensure all growers have signed HPAs before trading.
- Confirm that your grower statements meet pricing transparency requirements.
- Review how you handle rejected produce.
- Be prepared for ACCC audits in 2025.
For support or more information, contact nswchamber@freshmark.com.au for compliance guidance and updated templates.
