AUSVEG welcomes the Australian Government’s commitment to adopt the recommendations of Dr Craig Emerson’s review of the Australian Food and Grocery Co­­­­­­­de of Conduct.

The peak body for Australia’s vegetable, potato and onion industry is pleased to see grower calls for the Code to be made mandatory, the introduction of significant penalties for breaches, more independent and confidential complaint, dispute and arbitration mechanisms and an emphasis on addressing fear of commercial retribution embraced in response to Dr Emerson’s review.

AUSVEG also welcomes the particular focus on the fresh produce category in Dr Emerson’s final report, as well as recommendations to improve the practices and behaviours of supermarket representatives in their dealings with suppliers.

AUSVEG CEO Michael Coote said it was hoped implementation of the report’s recommendations would lead to improved relations between retailers and fresh produce suppliers, and help provide growers with greater certainty at a time when the industry is experiencing a cost-of-production crisis.

“Retailer relations with suppliers are complex, and we congratulate Dr Emerson on listening to concerns raised by industry, and by extension the Government for committing to implement the recommendations,” said Mr Coote.

“If implemented effectively, many of these recommendations have the potential to improve business relationships between growers and retailers, and may help ensure growers receive fair and sustainable prices for their produce.”

“While the intent of the review to strengthen the Code and address the power imbalance that disadvantages suppliers of fresh produce to big retailers is to be applauded, we note there is some way to go before these recommendations are operational.

“While we await further details on measures and timings, we also emphasise the importance of government and regulators continuing to consult with industry, to ensure the changes result in material differences to the bottom lines of struggling vegetable farming businesses.

“Without that material improvement, you will see more and more growers go out of business, which will be bad for the industry, bad for consumers and bad for the country.

“Once the glare of this intense political and public scrutiny on retailer practices that has characterised much of this year subsides, we must have in place workable measures that contribute to the long-term health of a vegetable industry that is key to the long-term health of Australians, and Australia’s food security.”