The horticultural wholesale arm of Tony Galati’s empire has been fined $62,600 for four breaches of the Horticulture Code.
Trading as Summer Fruit Sales and Cream of the Crop Produce, the ACCC alleges Galati breached the code by trading with four growers without having a horticulture produce agreement in place.
The ACCC also alleges the group provided statements to growers which did not specify the quality of some produce, as required by the code.
ACCC Commissioner Mick Keogh said a horticulture agreement must be in place before a grower and a trader can start trading, as it sets out key terms and conditions of the relationship.
“When traders haven’t put in place a written agreement that sets out the terms, quality parameters and what happens in the event of a dispute, growers are left without access to the full protections provided by the Code,” he said.
A court-enforceable undertaking has been put in place to implement a compliance program to ensure agreements are in place with each of its growers.
Galati is the sixth trader to have been penalised for alleged breaches of the Horticultural Code since June 2023, and is the largest penalty handed out over breaches.
The broader Galati Group comprises several companies, including the Spudshed grocery retail chain, which operates 17 stores across the state.
Spudshed posted a 16 per cent increase in sales for FY24, resulting in a profit of $14.1 million.
That was up from FY23's $5.4 million profit, and FY22's $1.6 million.
