What effect will the Code have on price averaging of produce?
An agent must, under the Code, pay the grower the money received for the sale of the grower’s produce after subtracting: • any commissions and agent’s fees permitted under the horticulture produce agreement • any extra amounts that may be deducted under the agreement. This means that the practice of paying growers a price based on the average received by the agent for their produce and that of other growers (in a pooled arrangement) is not permissible under the Code. Under the Code, growers must receive the price that was their produce was actually sold for (less the agreed deductions).
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