Rural Law Online A guide to the law for Victorian Primary Producers

Sale of farm produce

The sale of farm produce is now increasingly deregulated and no longer under tight government regulation due to privatisation and the development of international and national markets.

Growers now have a greater variety of alternative methods for selling their produce. Many industries have set up structures and organisations to market their produce allowing them to set and maintain quality standards. This style of marketing is a variation on the theme of grower cooperatives at local or regional levels, which have existed traditionally and still thrive in some areas.

Many farmers have also been able to reduce dependence on merchants thanks to high-yield crops such as canola, which require less storage, decreasing the need for large storage facilities.

The practice of selling direct to the public continues and, in some cases, has increased as farmers become more conscious of their cash-flow needs and see opportunities that were not available under tight regulation. Other farmers are beginning to see the potential in selling farm produce such as fruit and vegetables electronically online and subcontracting delivery to other parties. Produce can be sold by private treaty (commonly fruit and vegetables) or by auction (commonly livestock).

Producers are usually bound by the same legal obligations facing all vendors in Victoria. Equally, they have the same legal protections that are available to other sellers. Farm-gate sellers also have to comply with laws that cover duty of care and negligence to people who enter their properties to buy produce.

Entrepreneurial producers who have established food sale ventures such as bed and breakfasts, wineries and restaurants, must also comply with the requirements of the Food Act 1984 (Vic) in matters such as registration, packing, labelling and cleanliness.

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International market access

Much of Australia's farm produce is sold overseas and export controls are governed by the provisions of the commonwealth Quarantine Act 1908 and the Export Control Act 1982.

The Australian Quarantine and Inspection Service (AQIS) provides information, inspection and certification services for produce bound for export. For further information, visit AQIS through the Department of Agriculture, Fisheries and Forestry portal - www.daff.gov.au.

Australia is a member of a number of international bodies aiming to encourage the export of produce by reducing barriers to international trade (including quality and pricing policies). Examples are:

  • the International Sugar Organisation and International Sugar Agreement;
  • the International Grains Council and International Grains Agreement;
  • the International Cotton Advisory Committee;
  • the New World Wine Producers' Forum set up in 1998 by Argentina, Australia, Canada, Chile, New Zealand, South Africa, Uruguay and the USA to promote measures to improve the trading environment for wine;
  • the International Office of Vine and Wine (OIV), an inter-governmental organisation of 45 countries making recommendations that influence regulatory arrangements in Europe, a major export destination for Australian wine (in 1996 Australia initiated a review of OIV and the treaty establishing it and it is expected that a new treaty text will be completed in 2001);
  • the Australia/EU Wine Agreement signed in 1994 which left open for further negotiation a number of legal issues including the protection of certain wine terminology. Australia is working with European Commission negotiators to finalise these issues.
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