Throughput values slip 

Some three months ago, total Market throughput values on a year to date basis were running well ahead of last year's record figures.

The prices for most product lines remained firm throughout the first half of the financial year and the Markets were looking at yet another record year.

Since then however, the Brismark Credit Service has reported throughput values slipping behind the same period last financial year, including one week where the Credit Service throughput value was over 20% lower than the corresponding week last financial year.

The drop has resulted because of strong supply volumes following favourable weather conditions across the majority of production areas with the market for some lines becoming glutted. The general easing of the extreme weather patterns that have occurred in many horticulture production areas throughout Queensland and interstate over the past two years has seen an increased supply of produce over recent months. It has also seen Market throughput values ease quite dramatically.

Despite the drop in values, recent media articles are continuing to highlight retail mark-ups and as recently as last Sunday 15 June, Queensland Farmers Federation CEO, John Cherry, speaking about fruit and vegetable prices, was quoted as saying that "supermarket prices were unreasonable".

He went on to question the levels of transparency in the retailer supply chains. Mr Cherry's concerns are obviously not shared by some other grower representative organisations. Comments to the contrary can be found in the latest round of submissions to the ACCC regarding the horticulture code of conduct.

One organisation which has argued to exclude the major retailers from the Code has justified their stance on the basis that they are aware of the "positive business relationships many growers have with the major retail chains".

If this is a justifiable basis to argue the exclusion of the retail chains, what about the many positive business relationships that growers have with wholesalers?

When the same organisation is also arguing for reduced flexibility between growers and wholesalers through the removal of pre-Code arrangements, and increased levels of enforcement action by the ACCC, this is surely an example of double standards and is simply hypocritical.

Surely all parties who have a positive business relationship should not be hamstrung by the requirements of the horticulture code and many growers share this view.

Many growers have also said that they were originally led to believe that the horticulture code would include the supermarket chains.

More importantly however, if there is to be any recognition of the "positive business relationships" which exist in the industry, a grower should be able to enter into whatever contractual relationship works best for them, be that with a retailer, wholesaler (trader), processor or exporter.