Violation of the Horticulture Code: Nutrano Penalised
3 mins reading time
Recently, Nutrano, an Australian-owned fruit grower, found itself facing a penalty of $24,850 due to allegations of violating the Horticulture Code.
Nutrano specialises in producing citrus, mangoes, and blueberries with primary operations in Victoria and farms in Queensland, the Northern Territory, and New South Wales. In essence, Nutrano not only cultivates its own orchards and manages packing facilities, but also acts as an agent for other growers, marketing and selling their produce to supermarkets.
The penalty stemmed from reports received by the Australian Competition and Consumer Commission (ACCC) noting concerns about Nutrano’s alleged lack of transparency regarding the prices they paid their citrus growers and the timing of their final payments.
What is the Horticulture Code?
The Horticulture Code of Conduct is a mandatory industry code prescribed under the Competition and Consumer Act 2010 (CCA).
Its purpose is to improve clarity and transparency of trade between growers and traders, ensuring that compliant produce agreements are in place. This is intended to encourage fair dealing between growers and traders, with penalties in place for those who fail to comply with these standards.
What’s the importance of this penalty?
The penalty serves as a clear message to businesses operating in this industry to ensure they follow their obligations to growers and traders, as set out in the Horticulture Code, and that they act in good faith.
To achieve this, businesses should take several steps, including:
- Providing transparency to growers and traders regarding pricing to ensure they are informed about the market value of their product.
- Clearly specifying the quality requirements and standards that will determine the quality of the grower’s produce.
- Ensuring the agreements with traders and growers do not contain clauses that grant a party absolute discretion to modify the produce specifications, as such clauses may fall under the Unfair Contract Terms (UCT) regime, which has been bolstered as of 9 November 2023.
How can Macpherson Kelley assist?
Our MK experts can assist with:
- Implementing a regulatory compliance program in your business that aligns with the Horticulture Code or other mandatory standards where relevant.
- Reviewing your businesses agreements for ‘unfair contract terms’ and recommending revisions. Breaches to the UCT regime may result in penalties of up to $50 million or 30% of the business’ annual turnover (whichever is greater).
If you have any questions or require further guidance, please do not hesitate to reach out to one of our experts at Macpherson Kelley.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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Violation of the Horticulture Code: Nutrano Penalised
Recently, Nutrano, an Australian-owned fruit grower, found itself facing a penalty of $24,850 due to allegations of violating the Horticulture Code.
Nutrano specialises in producing citrus, mangoes, and blueberries with primary operations in Victoria and farms in Queensland, the Northern Territory, and New South Wales. In essence, Nutrano not only cultivates its own orchards and manages packing facilities, but also acts as an agent for other growers, marketing and selling their produce to supermarkets.
The penalty stemmed from reports received by the Australian Competition and Consumer Commission (ACCC) noting concerns about Nutrano’s alleged lack of transparency regarding the prices they paid their citrus growers and the timing of their final payments.
What is the Horticulture Code?
The Horticulture Code of Conduct is a mandatory industry code prescribed under the Competition and Consumer Act 2010 (CCA).
Its purpose is to improve clarity and transparency of trade between growers and traders, ensuring that compliant produce agreements are in place. This is intended to encourage fair dealing between growers and traders, with penalties in place for those who fail to comply with these standards.
What’s the importance of this penalty?
The penalty serves as a clear message to businesses operating in this industry to ensure they follow their obligations to growers and traders, as set out in the Horticulture Code, and that they act in good faith.
To achieve this, businesses should take several steps, including:
- Providing transparency to growers and traders regarding pricing to ensure they are informed about the market value of their product.
- Clearly specifying the quality requirements and standards that will determine the quality of the grower’s produce.
- Ensuring the agreements with traders and growers do not contain clauses that grant a party absolute discretion to modify the produce specifications, as such clauses may fall under the Unfair Contract Terms (UCT) regime, which has been bolstered as of 9 November 2023.
How can Macpherson Kelley assist?
Our MK experts can assist with:
- Implementing a regulatory compliance program in your business that aligns with the Horticulture Code or other mandatory standards where relevant.
- Reviewing your businesses agreements for ‘unfair contract terms’ and recommending revisions. Breaches to the UCT regime may result in penalties of up to $50 million or 30% of the business’ annual turnover (whichever is greater).
If you have any questions or require further guidance, please do not hesitate to reach out to one of our experts at Macpherson Kelley.