Fresh Markets Australia (FMA) says Horticulture Code reform must improve clarity, confidence and compliance while keeping workable trading options available to growers and traders.
FMA lodged its supplementary submission on 4 June to the independent review of the Horticulture Code of Conduct, led by Chris Leptos AO, following further consultation on proposed Code reforms.
FMA Chair Shane Schnitzler said the review should be guided by the evidence now before it, including grower, trader, commodity and small business submissions.
“Every grower and trader covered by the Horticulture Code should comply with their obligations under it. FMA does not condone breaches of Code obligations,” Mr Schnitzler said.
“Compliance matters should be dealt with directly through the proper processes. Code reform should be guided by the full evidence now before the review.
“That evidence points to clearer HPAs, better Code literacy, model specific reporting and proportionate compliance, while keeping workable trading options available.”
Australia’s central market trading floors are supplied by more than 14,000 fruit and vegetable growers and involve an estimated 24 million annual sales transactions.
“At that scale, reform has to work in day-to-day trade,” Mr Schnitzler said.
“Fresh produce is perishable, prices can move quickly, and trading arrangements need to respond to supply, demand and market fluctuations on any given day.”
FMA supports retaining merchant formula/method pricing as a legitimate price setting method within the merchant role.
KordaMentha’s economic analysis for FMA, which drew on survey responses from central market trading floor traders across all states. It found merchant trading is the dominant trading role, with 69 per cent of surveyed merchants using merchant formula/method pricing either as the only merchant price setting method or as part of current trading arrangements with growers.
“Merchant formula/method pricing is a substantial and established part of central market trade,” Mr Schnitzler said.
“It can link grower returns to actual market outcomes in a fast-moving trading environment.
“Removing that option would reduce grower choice and could force transactions into a fixed price or agency structure that does not suit the produce, the grower or the market conditions.”
An independently conducted Roy Morgan grower survey for Brismark found that 81 per cent of growers surveyed supported the inclusion of method/formula type merchant transactions, up from 67 per cent in 2007.
“That matters because this is about grower and trader choice, not trader preference alone,” Mr Schnitzler said.
“Growers and traders need clarity, confidence and practical choices that work in real trade. Removing legitimate trading options would take the Code in the wrong direction.
“For merchant formula/method pricing, the focus should be clear HPAs, practical calculation information and Code literacy, while protecting commercially sensitive customer information and preserving the merchant role.”
Mr Schnitzler said any remade Code should be backed by a well-resourced practical Code literacy program.
“After almost 20 years of the Code, practical Code literacy remains uneven as demonstrated in the submissions to date. More rules alone will not close that gap.
“Reform will only work if people can understand it, apply it and resolve issues early.”
FMA’s submissions to the Horticulture Code review, including its supplementary submission lodged on 4 June, are available at: https://www.freshmarkets.com.au/code-review-2026/
ENDS
About Fresh Markets Australia
Fresh Markets Australia is the national peak body representing wholesalers and supporting businesses in Australia’s central fruit and vegetable markets. FMA works through its state industry bodies: Brismark, Freshmark, Fresh State, Market West and the South Australian Chamber.
Australia’s central markets move more than 4 million tonnes of fresh produce each year and support more than $8 billion in annual wholesale value. They provide an open and competitive pathway to market for growers and supply independent retailers, greengrocers, food service businesses, providores, hospitality and catering businesses, processors, exporters and other wholesale buyers across the fresh produce supply chain.
Media contact:
Brett Collins
Chief Executive Officer, Fresh Markets Australia
E: [email protected]
M: 0400 877 018
Contact details:
Adi Stevens, Royce
