After the concern raised by ACCC related to unfair terms and condition in the contract, many of the biggest winemakers in Australia have agreed to change their supply agreement with grape growers.
The ACCC communicated several large winemakers after its market study on wine grape, where it was pointed out that many of these winemakers are using standard form grape supply contracts where the conditions seemed unfair.
Now, several winemakers shall amend terms that permit them to make unilateral adjustments to supply agreements, involving one?sided termination rights. Most of them have even decided to attach conditions to their rights to enter growers’ vineyards for inspections, and to not stop growers from obtaining legal or financial assistance via confidentiality clauses in the deals.
However, ACCC is concerned about the lengthy payment period. Now, growers would have to wait for longer period to get their full payment which could even be up to 7 months.
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Find out the drivers for the rise in cannabis stock rates Even though the cannabis sector is in its growing phase, Australian cannabis stocks have already started to rise actively due to a hastily increasing patient base, and a legislative landscape that is gradually beginning to liberalise.
Outreach and future of cannabis stocks As countries liberalise regulation for medical and recreational use of cannabis, it is predicted that the industry would grow sharply in upcoming years The global cannabis market stands currently at around $8 billion and it is expected that the hemp derived CBD market to hit approximately $22 billion by 2022.
Key Players in the sector Althea Group Holdings Limited (ASX: AGH) and Cann Group Limited (ASX: CAN) are amongst the top players. Other Australia cannabis market players are- MGC Pharmaceuticals Ltd (ASX: MXC), Elixinol Global Limited (ASX: EXL), THC Global Group Limited (ASX: THC), AusCann Group Holdings Limited (ASX: AC8)