AUSTRALIA | Western Australian horticulture wholesaler Galati has paid AUD 62,600 in penalties after the ACCC issued it with four infringement notices for alleged contraventions of the Horticulture Code.
The ACCC alleged that Galati breached the Code by trading with four growers without a horticulture produce agreement.
Galati, a large horticulture wholesaler trading as Summer Fruit Sales and Cream of the Crop Produce, purchases directly from growers and traders.
The broader Galati Group comprises several companies and is best known for its Spudshed grocery retail chain, which operates 17 stores across Western Australia.
“A horticulture produce agreement must be in place before a grower and trader can start trading, as it sets out the key terms and conditions of their commercial relationship,” said ACCC Commissioner Mick Keogh.
The ACCC also alleged that Galati provided growers with statements that did not specify the quality of some produce, as required by the Code.
The Horticulture Code is a mandatory industry code prescribed under the Competition and Consumer Act (CCA). The Code requires that agents and merchants operating in the horticulture sector have a Horticulture Produce Agreement confirmed with each grower they deal with that complies with its requirements.
“When traders haven’t put in place a written agreement that sets out the terms, quality parameters and what happens in the event of a dispute, growers are left without access to the full protections provided by the Code.”
Galati also provided a court-enforceable undertaking, which has been accepted by the ACCC, to implement a compliance programme and to ensure they have a signed agreement with, or written notice of acceptance of the terms of an agreement from, each of its growers.
Keogh added that it was important that industry codes of conduct in agriculture be enforced to protect the many small businesses in that sector.
When the ACCC updated its guidance on the Horticulture Code in August 2022, it shifted from focusing on education and compliance activities to focusing on greater enforcement of the Code.
“We will continue to monitor traders’ compliance with their obligations under the Code and take appropriate enforcement action when necessary.”
The ACCC will conduct further industry education activities and provide traders with easy-to-understand guidance on the Code. Galati is the sixth trader to have paid a penalty for alleged breaches of the Horticulture Code since June 2023.
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