Hardware giant Bunnings has agreed to a statement of principles to address concerns about its relationships with plant suppliers.
The issue came to light during last year's supermarket senate inquiry, when suppliers complained about Bunnings' behaviour and called for a code of conduct to protect growers.
Growers said they were fearful of making complaints to Bunnings and the industry group Greenlife Industry Australia (GIA) said as many as 20 per cent of suppliers were operating at a loss.
Power imbalance
GIA chief executive Joanna Cave said the agreement would address those issues and improve conditions for growers.
"Bunnings is an enormous, publicly listed company, so you can see straight away there's a structural disadvantage," Ms Cave said.
"They lacked contracts, they couldn't negotiate terms, and a lot of things that Bunnings introduced into the relationship were introduced unilaterally by Bunnings."
Ms Cave said growers had been deeply concerned about losing business if they stood up to Bunnings.
"The fear of retribution, whether real or perceived, was an absolute part of (their) story, there's no question about that," she said.
The federal government said in i's response to the Independent Review of the Food and Grocery Code of Conduct (June 2024) that all businesses, especially those with significant bargaining power, should treat their suppliers fairly and in line with the law and warned that it would continue to monitor conduct in the nursery plants industry.
Ms Cave said the agreement included compromises but described it as a watershed moment for growers.
"It delivers commercial certainty to growers in a way they haven't experienced before,"
she said.
"It also builds in some independent arbitration so growers have somewhere to take their complaints," Ms Cave said.
Not all growers convinced
However, nursery owner John Van Der Lay is not convinced.
He has worked in the industry for 50 years.
Located on the Mid North Coast of NSW, Mr Van Der Lay said he would no longer supply Bunnings because of the way he was treated in the past.
"A leopard doesn't change its spots and what happened previously could continue,"
he said.
Ms Cave said the agreement was an important step for growers.
"It won't solve all the problems and it's a voluntary agreement — it relies on good faith and people doing the right thing," she said.
"We're optimistic that it will change things for growers, and we're now working with Bunnings, not against them."
Bunnings keen to collaborate
Bunnings group managing director Michael Schneider said his company was committed to working with its suppliers.
"There is clarity on the things that we do when it comes to buying operations, inventory planning, and the handling of concerns," he said.
"We think this is a really important first step in creating greater transparency and accountability between Bunnings and its growers, so we can all work together to make this fantastic industry greater," Mr Schneider said.
The changes will take effect in the coming weeks.
The first formal review will be held on February 26 next year and annually after that.
ABC Rural RoundUp newsletter
Stories from farms and country towns across Australia, delivered each Friday.
Your information is being handled in accordance with the
ABC Privacy Collection Statement.
