Standard contract for Code now available

Peak horticulture organisation Growcom today announced that a standard contract (‘horticultural produce agreement’) is now available for growers and traders to use as a guide to their negotiations under the mandatory Horticulture Code of Conduct.

In addition, an example of the traders’ terms of trade and an explanatory brochure are also available on Growcom’s web site at http://www.growcom.com.au/. The documents were requested by growers at recent information meetings and have been prepared by Growcom, National Farmers Federation and Horticulture Australia Council (HAC).

Chief Advocate Mark Panitz said growers should use the example contract as the starting point in their negotiations with wholesalers.

“From 14 May, a trader and a grower will only be able to trade in horticultural produce with each other if they have entered into a horticultural produce agreement.

“The example document we have provided is the minimum required under the Code. I recommend growers read the document carefully and adapt it for their own requirements in negotiations with their trader.

“The agreement will stipulate whether the trader will act as an agent or a merchant. It also sets out in writing how produce will be traded, payment and reporting timeframes.

“However, a grower who wishes to find out who buys their produce under an agency arrangement, for example, can add an amendment to the horticultural produce agreement to reflect this, on agreement with the trader.

“Traders will be required to publish their terms of trade listing payment terms and delivery and quality requirements. This will give growers the opportunity to ‘shop around’ to find the trader that offers them the best trading terms.

“The terms of trade will also stipulate what commission, fees or other charges are payable by the grower where the trader is acting as an agent. Growers who are confident about the quality of their produce and the reliability of their supply should now feel powerful enough using the backing of the Code to be able to negotiate commission rates down.

“Ultimately, wholesalers’ businesses depend on growers’ product. Growers are now in the position to be able to bolster the business of the trader who provides them with best terms.

“Good traders will recognise this and will start promoting the favourable terms of their business to growers.”

Mr Panitz said that wholesalers were continuing to try to spread ‘wholesale confusion’ about the code and that publishing the standard contract example would disperse this.

He warned that some wholesalers were still bullying growers to sign contracts that had been backdated to December last year and which were not Code compliant.

For further comment: contact Growcom Chief Advocate Mark Panitz on 07 3620 3844 or 0418 151 908 .  Issued by Chris Walker, Marketing Communications and Media Consultant on 07 3620 3864 or 0408 014 843 (ref: standard contract for code now available).

Click on the title below for a link to the document: