The Rudd Government today released a report looking at the horticulture industry which recommends a range of measures to deliver fairer prices for fruit and vegetable growers.

The report is another step forward in the Government’s efforts to address industry concerns that growers are not always receiving a fair share of the end price paid by Australian consumers.

It follows an earlier investigation by the Australian Competition and Consumer Commission (ACCC) into grocery prices, which made 13 recommendations relating to horticulture.

This includes recommending a review of the horticulture code of conduct and extending the code to include major supermarket chains and other retailers, processors and exporters.

The ACCC also recommended that wholesalers provide growers with a sale price, or a formula for calculating that price, before they take their produce.

The code of conduct commenced in May 2007 to regulate dealings between horticulture growers and wholesalers and help to resolve disputes.

An expanded horticulture code committee was appointed by Minister for Agriculture, Fisheries and Forestry Tony Burke to review the code of conduct and look at the ACCC’s recommendations.

After wide industry consultation, the committee’s report ‘Implications of the Australian Competition and Consumer Commission recommendations to amend the Horticulture Code of Conduct’ has now been released.

It found that “the entire industry will benefit in the long run from improved efficiencies and transparency”, if the ACCC’s recommendations are implemented.

Where committee members could not agree on a single recommendation, the report outlines a range of options.

Mr Burke said the Government would consider the report’s findings and issues raised during consultation, such as the possible establishment of a horticulture ombudsman.

“The horticulture sector is one of our biggest agricultural industries, worth $9 billion each year and supporting around 30,000 growers,” Mr Burke said.

“For years, there have been tensions at various points along the horticulture production chain.

“This is a complex issue, but the Government is following a basic principle – we want to provide a fair system and minimise red tape for everyone in the horticulture industry.”

The committee worked within the terms of reference set by the Productivity Commission and the full report can be found at www.daff.gov.au/hortcode