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Marketing

01 Mar 2009

I grow oranges and lemons and have a stall at the local farmers' market. Is there anything to stop me selling oranges that are imported from the USA, rather than from my orchard, or in fact, from other regions in New Zealand?

Most stallholders at farmers' markets enter into an agreement with the market manager. The majority of farmers' markets operated in New Zealand belong to the Farmers' Markets New Zealand Inc. (Association) which has issued guidelines stating that all produce sold at farmers' markets must be locally produced. Stallholders selling non-local produce at markets belonging to the Association are in breach of their contract with their particular Farmers' Market and run the risk of being removed from the market.

However, further and potentially more serious ramifications lie in the fact that if consumers are misled about the origin of the produce then you may be found to be in breach of the Fair Trading Act 1986 (FTA).

Farmers' markets are often perceived by consumers as selling fresher produce than say a supermarket, as the produce has come from a local producer and in theory at least, not been stored, or, transported for any great length of time. If you were to sell produce from overseas and not advertise that fact, consumers may obtain the overall impression that the produce is local. The Commerce Commission are likely to form a view that the sale of that produce amounts to misleading or deceptive conduct. Fines imposed for breach of the FTA are up to $60,000 for individuals and $200,000 for companies.

While country of origin of food is not a requirement under New Zealand law, there are still issues regarding misleading consumers under the FTA. The origin of produce will be important to many consumers buying at farmers' markets possibly more now than ever before, especially in light of the recent Sanlu milk powder case.

So, play it safe. Avoid the wrath of the public, the Association, and, the risk of fines of up to $200,000. Sell only local produce at farmers' markets, or, make it clear to consumers if produce is not local.