You will be required to comply with this code if you intend to sell horticulture produce as an agent on behalf of a grower or as a merchant, or if you intend to grow horticultural produce. The code aims to improve the clarity and transparency of trading arrangements between growers and traders in the horticulture sector.
The code:
- requires growers and traders to have a contract called a horticulture produce agreement (HPA)
- obliges all parties to deal in good faith
- obliges merchants to explain how price will be calculated
- includes penalties for breaching certain sections of the code
- requires growers and traders to keep certain records.
The code does not apply to:
- nursery products (trees, plants, seeds and flowers)
- retailers
- exporters
- processors
- purchasers of horticulture produce who sell directly to consumers.
The code introduces FreshSpecs, the default product specification to identify general appearance criteria, major defects, minor defects, and consignment criteria.