Horticulture wholesaler Galati has been fined $62,600 for trading with at least four growers without a produce agreement.
The penalty was imposed upon the company after the Australian Competition and Consumer Commission (ACCC) issued it with four infringement notices for the contraventions.
According to the regulator, the Horticulture Code requires traders and growers to sign a horticulture produce agreement to form their commercial relationship, which sets out the key terms and conditions.
“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,” ACCC commissioner Mick Keogh explained.
In addition, the ACCC also alleged that Galati provided statements to growers that did not specify the quality of some produce, as required by the Code.
Galati trades as Summer Fruit Sales and Cream of the Crop Produce. The broader Galati Group comprises several companies and is best known for its Spudshed grocery chain, which operates 17 stores across Western Australia.
Aside from paying the penalty, the company has committed to implementing a compliance program.
Last October, fruit grower and trader Nutrano was fined $24,850 for breaching the Horticulture Code.
