FARM groups have called for a powerful ombudsman to be installed to resolve disputes between growers and buyers along the supply chain, including supermarkets.

There is growing concern the industry's mandatory code of conduct, which only covers wholesale transactions, has been ineffective and failed to protect growers because it lacks enforcement "teeth".

"The code regulations have been in place for more than two years, but there's been no action," Horticulture Australia Council chief executive Kris Newton said. "The usual grower reaction when asked about it is, 'what code?'."

The call comes after the UK Government recently announced it was appointing an ombudsman to oversee a code of conduct governing dealings between farmers and retailers, focusing particularly on supermarkets.

Ms Newton said there had been an ombudsman put in place for the voluntary Product and Grocery code prior to the horticulture code commencing in 2007, but the position had been watered down to a "mediation adviser" to cover both codes.

"We want a return to a genuine ombudsman role, with the power to do spot checks and audits, 'name and shame' transgressors, enforce arbitration where mediation isn't successful and refer misbehaviour to the Australian Competition and Consumer Commission," she said.

"Currently, there are no real disincentives to do the wrong thing, just a slap on the hand."

Supermarkets, exporters and processors also had to be brought into the code, Ms Newton said.

NSW Farmers' Association horticulture committee chairman Peter Darley backed HAC's call, saying an ombudsman must also have the power to protect the identity of growers who complain about treatment by buyers.

"Every grower has a story to tell, but they're too scared," he said.

Agriculture Minister Tony Burke last year received recommendations based on an ACCC review for strengthening the code, including extending coverage to supermarkets.

He is yet to unveil the Government's response and could not be contacted for comment.