Research conducted by leading research agency, Roy Morgan Research, on behalf of fresh produce industry organisation Brismark, has provided valuable insights into the views of fruit and vegetable growers regarding the Horticulture Code of Conduct (Code) and the current independent review of the Code launched earlier this year by the Federal Government.
Brismark CEO Andrew Young said the findings have gone a long way to dispel some of the concerns raised about the effectiveness of the Code.
“Two-thirds of growers or 65% expressed awareness of all or most of the Code,” Mr Young said.
“Importantly, 81% expressed strong support for the current method or formula-based pricing model, where the return price to the grower is based on the sales price achieved by the trader less an agreed margin.”
The research also found that 61% per cent of growers strongly support allowing wholesalers (traders) and growers to contract out of some Code requirements that are not relevant to them.
Significantly, only a little over one in five or 22% of growers reported having a dispute with a Markets wholesaler in the past five years across any or multiple Australian Central Markets. Of those disputes, 58% were resolved directly between the grower and the wholesaler, without the assistance of third parties.
Mr Young said the findings reinforce Brismark’s view that the Code should be retained but streamlined to reduce unnecessary compliance burden, which is currently seen as being exorbitant. He cited a recent Korda Mentha analysis for Fresh Markets Australia that estimated the cost at $99,500 per Market wholesaler.
“The Code is already delivering accountability, with nine traders facing financial penalties over the past three years,” Mr Young said.
He said the major issues Brismark has identified as part of the review include:
- reducing compliance costs so it does not penalise those traders who are trying to do the right thing
- recognising the ongoing need for education to ensure growers and traders are aware of Code requirements
- ensuring that penalties applied for breaches of the Code target those parties who blatantly and systemically ignore the requirements of the Code (and not those businesses which are generally doing the right thing)
- extending the application of the Code to all first point of sale transactions by growers
- the need to recognise that mutual obligations apply to growers and traders to underpin the Code’s effectiveness.
Mr Young said Brismark supports the current review and is keen to see an outcome which ensures the Code is fair, cost effective, and workable in its application.
To read more about Brismark’s submission to the Horticulture Code of Conduct Review and the findings from the Roy Morgan Research Survey of Australian Fruit and Vegetable Growers visit News, Videos & Publications – Brismark.
