BODIES representing Australia’s $7 billion fresh wholesaling sector say they have been left out of the loop after the announcement of the review into the Horticulture Code of Conduct.
While cautiously welcoming the announcement earlier this month and suggesting the review was long overdue, the Central Markets Association of Australia (CMAA) has raised concern it is not represented on the review panel.
The review is set up to examine laws that regulate trade between fresh fruit and vegetable growers and wholesalers (traders).
Accountant and horticulturalist Mark Napper and Alan Wein will undertake the independent review on behalf of the government, with Mr Napper being a grower with substantial growing sector experience with Ausveg, and current roles with Horticulture Innovation Australia Limited (HIA) and Low Chill Australia Inc.
CMAA spokesman Andrew Young said that the independent review panel included very significant growing sector experience and none relating to the Central Markets or fruit and vegetable wholesaling.
“In contrast, the major supermarkets were largely the authors of the Grocery Industry Code of Conduct with the resultant voluntary Code including clauses which can promote flexibility in the commercial relationship between retailers and their suppliers,” Mr Young said.
“The wholesaling sector wants the same opportunity to establish a workable commercial code.
"Accordingly, while the review represents a good opportunity to reiterate the anticompetitive and unworkable nature of the Code, the wholesaling sector will be very interested in reviewing and responding once the terms of reference are made available, but is already cautious given this sector has already been cut out of the loop and is unrepresented.
The newly named Fresh Markets Australia (formerly the Australian Chamber of Fruit and Vegetables Industries Limited) echoed similar concerns.
FMA Chairperson Shane Schnitzler called it "poor form" from the Australian Government in not notifying the group as a key stakeholder within the fresh produce supply chain.
"There was a distinct lack of consultation regarding the introduction of the Code with the market's representation FMA back then, and we are seeing echoes of this behaviour again today with this announcement," Mr Schnitzler said.
He also raised questions over the appointment of independent reviewers Mr Napper and Mr Wein, saying neither have market wholesaler experience.
But Mr Schnitzler said the review was a chance to correct an imbalance which had existed since the Code's introduction.
"Since its inception in 2007 the code has delivered increased regulatory and cost burdens that must be passed onto growers who support the Central Market system, despite ongoing requests for a review from the Market wholesaling sector," he said.