When you conduct any transaction on this platform, all trade conducted using the HiveXchange falls under the trade practices act and other relevant state and federal laws in Australia. When you trade using the HiveXchange you are bound by those laws and the terms outlined here.
One of the laws you must abide by is the Horticulture code of conduct which is a mandatory code under the trade practices act. It applies to transactions between growers and traders of fresh fruit and vegetables in Australia.
The key requirements of the Code are that:
- traders publish their preferred ‘terms of trade’
- growers and traders use written horticulture produce agreements
- traders are clearly identified as either agents or merchants for any transaction
- traders provide written transaction information to growers
- independent assessment is available on transactions
- low cost mediation is available if disputes arise
Notwithstanding private agreements between traders and growers the following agreements apply at a minimum to all trades facilitated by the HiveXchange. That allows you to trade online and meet the standards of the code, because every trade on the HiveXchange is covered by the terms outlined here and comes with a full audit trail of the transaction.
Terms of Trade for Traders
When terms of trade apply
These terms of trade set out the terms and conditions on which the trader is prepared to trade in horticultural products with growers as required by the Horticultural Code of Conduct (Code).
The Code requires that a trader and grower may only trade in horticultural produce with each other if they have entered into a horticultural produce agreement that complies with the Code.
If the trader and grower agree, these terms of trade may be included in a horticultural produce agreement between the trader and a grower and form part of the terms and conditions of that agreement.
The trader is prepared to trade in horticulture produce with a grower as [an agent] / [a merchant] / [either an agent or a merchant].
Horticulture produce must be delivered by a grower in the manner specified in the product description on the HiveXchange’s trading floor and as outlined in the confirmations that are automatically sent out to the Trader and Buyer and stored by the HiveXchange for future reference .
Quality of produce
Horticulture produce provided by a grower must comply with the noted requirements of the Buyer and any statements made about the produce on the HiveXchange in relation to quality of produce.
Rejection of produce
Horticulture produce supplied by a grower may be rejected if the horticulture produce is light, damaged, not in class, not as specified in the hivegram, or if the produce has problems which can be clearly traced to pre or post harvest management issues from the primary producer.
The trader will immediately notify the grower by telephone and via the HiveXchange if it rejects any horticulture produce and will subsequently advise the grower in writing of the rejection and the reasons for the rejection following delivery of the horticulture produce to the trader.
The consequence of the trader rejecting the horticulture produce is that the grower must compensate the Buyer up to but not greater than the value of the traded transaction.
If the trader is trading as an agent, the trader will pay the grower the proceeds of a sale of the grower’s produce by the agent within 14 days of receipt of goods.
If the trader is trading as a merchant, the trader will pay the grower for the horticulture produce within 7 days of receipt of goods.
Any other payment terms must be agreed before a transaction is made and either covered in a notation to the payment processing records, or advised in the producers product description for that particular product sku.
The trader has insurance in respect of the horticulture produce once the produce is under the trader’s control.
The maximum amount of claims and details of what is covered by the trader’s insurance policy is available on request from the agent.
No additional agent fees are charged. All trades completed on the HiveXchange are for a fixed price for defined goods as agreed during the trade.
Terms of agreement
- The grower has agreed to sell and the trader (merchant) has agreed to buy horticulture produce of the type, quantity, specification and price stated in the HiveXchange’s produce descriptions or as ordered by the trader and confirmed in writing by the grower from time to time.
- If the trader has published their terms of trade as at the date of agreement, or other written terms of trade agreed between the parties, this agreement applies to all sales and purchases of produce under this agreement. In the event an agreement has not been published the trader’s terms above will apply.
- This agreement may be terminated early by either party giving the period of written notice specified below to the other party.
- This agreement may only be varied by further written agreement signed by both parties.
Growers and agent relationships on the HiveXchange
An agent trading arrangement occurs where a trader arranges the sale of a grower’s produce for a commission or fee. Ownership of produce remains with the grower until the produce is sold. The Code requires that agents act in the best interests of growers when selling produce, and that the sale takes place on an ‘arm’s length’ basis. An agent is required to pay the grower the proceeds from the sale less any commissions, fees and extra amounts specified in the Horticulture Produce Agreement.
The HiveXchange does not support this type of commercial arrangement on our platform. All trades on the HiveXchange must have commercial terms agreed upfront, and ownership transfers to the agent on receipt and acceptance of the goods.
Merchants and growers
A merchant trading arrangement occurs where a trader buys a grower’s produce for the resale of that produce.
The price to be paid by a merchant is required to be agreed in writing through the Horticulture Produce Agreement. While it is recommended that the price is agreed in writing before delivery, the Code states that the price can be determined in writing immediately upon delivery of the produce to the merchant. Immediately upon delivery means that the price should be agreed in as short time after the delivery as is reasonably possible, and on the basis of an assessment of the produce which is delivered.
If the price is agreed before delivery, then ownership of the produce transfers to the merchant on delivery.
If the price is agreed immediately upon delivery, then ownership of the produce transfers once the price has been agreed.
The trading model supported on the HiveXchange is for the price to be agreed up front and for any adjustments to be made once delivery is accepted by the Merchant.
On the HiveXchange’s trading floor, all price points are clearly described and agreed on prior to any transfer of goods, and those price agreements are sent out to the merchant and producer in writing by the HiveXchange , including additional notes on any special arrangements.
Written transaction information
A trader must provide a grower with a written report containing basic information about the purchase of the grower’s produce.
When acting as a merchant the trader must report on dates and times of delivery and purchase, quality and quantity of produce and prices paid.
A trader must provide the grower with the report within 7 days of delivery. The report can be for a single delivery or for a period of time as agreed.
Requirements for rejection of produce
If a trader decides to reject a grower’s produce, he or she is required to contact the grower immediately and provide written notification of the rejection and the consequences of the rejection. A trader can only reject produce if it does not meet the producers advertised produce type, quantity, specifications and delivery commitments as stated by the producer on the HiveXchange’s trading platform or as ordered by the trader and confirmed in writing by the grower.
Elements of the above information on the horticulture code of conduct has been sourced from www.nff.org.au