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The formation of Horticulture Innovation Australia (HIA) has completed final administrative procedures after Minister of Agriculture Barnaby Joyce declared it as the new industry services body for horticulture in Parliament yesterday.

In a media release, HIA chairman Selwyn Snell said it was an exciting time for Australian horticulture growers, and that he was looking forward to working with them towards a more sustainable and profitable future for the sector.

“I am delighted that HIA’s Statutory Funding Agreement and Constitution have been finalised and Parliament has been made the official declaration of HIA as the industry services body,” said Snell. “This declaration presents the first major step forward for the new company.”

HIA plans to work with Australia’s horticulture industries to invest more than A$100m into research, development and marketing programmes, Snell added. “Through this partnership, the horticulture sector can access Commonwealth funding through HIA for research and development activities,” he said.

While HIA has received the final go-ahead, details of how the new model will operate must still be worked out. The establishment of HIA follows an independent report into the performance of former research and marketing body, Horticulture Australia Limited (HAL). The report recommended HAL transition to a new grower-owned entity, with its financial and other assets transferred to HIA.

Declaring HIA well-positioned to form “a robust membership base that represents the full spectrum of Australian horticulture industries across all growing regions”, CEO John Lloyd said one of the first priorities was to establish 'a grower registry to communicate to its members'.

The new HIA Board of Directors, which was announced in October, is due to meet in early December to start work on setting the strategy for the new Research and Development Corporation (RDC).

Key peak industry bodies will be hoping the official declaration of HIA allows for funds to be released for upcoming research, development and marketing activities. HIA notified all fruit, vegetable, nut and nursery sectors on 4 November that it had to suspend all new contracts, funding arrangements and payments associated with HAL with immediate effect until the government funding agreement to set up the new body was signed.