Grocery code leaves Bunnings plant suppliers out in the cold

AFTER recommendations to bring Bunnings under the food and grocery code,  the final report of  the Grocery Code of Conduct has left Bunnings out of the code and greenlife growers disappointed. 

In his report, Dr Craig Emerson referenced Bunnings’ poor treatment of greenlife growers, but instead of bringing Bunnings under the Food and Grocery Code, he has given them two years to negotiate an agreement directly with the greenlife industry. 

Greenlife Industry Australia (GIA) acknowledged the release of the final report believing it was in the public interest for such big retailers to face some scrutiny to ensure they don’t abuse their market dominance and that growers are not unreasonably disadvantaged.

GIA Chief Executive Officer Joanna Cave said while she appreciated Dr Emerson acknowledging the inequalities greenlife growers are experiencing she is unsure how he expected growers to negotiate terms with Bunnings given the significant power imbalance.

“GIA is deeply disappointed. Although plants are already included in the Food and Grocery Code, the biggest retailer of these – Bunnings – remains outside the code, leaving greenlife growers without any protection in their dealings with the Wesfarmers’ megastore,” Ms Cave said.

The final recommendations also include making the code mandatory, introducing significant penalties for non-compliance, and developing a more accessible dispute resolution process that protects growers against retributions

With an estimated 70 per cent share of the plant retail market, Bunnings dominates the plant retail sector in Australia in the same way Coles and Woolworths dominate the grocery sector. 

NFF Horticulture Council chair Jolyon Burnett said that not bringing Bunnings under the code missed an important opportunity to extend some protection to greenlife growers and ensure that Bunnings does not abuse its power.

In its recent inquiry into supermarkets, the Senate Select Committee was sufficiently concerned about the inequities reported by greenlife growers not only to recommend that Bunnings be brought into the Food and Grocery Code, but also that a new inquiry into big box retailers be launched. 

However, in its published response to Dr Emerson’s Report, the Government appeared to offer greenlife growers a lifeline stating concerns about allegations of retailer conduct towards suppliers of nursery plants. 

“Between the Select Committee Inquiry, Dr Emerson’s Report and the Government’s response, it is clear that the inequity in the trading relationship between Bunnings and greenlife growers is now well understood. For this reason, we have engaged in discussions with Government about a Nursery Code of Conduct,” Ms Cave said.

“We look forward to progressing these discussions and hope that Bunnings does the right thing by engaging in this process in good faith, for the benefit of greenlife growers and the gardening public.”