Australia's fruit and vegetable growers will be protected by a mandatory code of conduct for the industry, after the country’s federal government formally committed to its election promise.

The government will now move forward the mandatory code to enforce pricing arrangements in the $7 billion (£3.3bn) industry, and honour its two-year-old promise.

Last-gasp meetings scuppered the government’s preference for a a voluntary code, but deputy prime minister Mark Vaile said growers can now do business with greater certainty and clarity in Australia’s wholesale markets.

"The government has been committed to improving the day-to-day relationships between fruit and vegetable growers and wholesalers by providing greater certainty and clarity for transactions," he said.

"The new code will deliver on that commitment and will implement a workable dispute resolution process."

Vaile also said the marketplace would become more competitive.

"The code will actually make wholesale markets a more attractive place to do business - increasing competition for produce," he said.

"It will also ensure real market signals on price and quality issues are delivered to growers, ensuring consumers get the best results.

"Horticulturalists can now expect the same standards in doing business as every other small business in Australia."