AUSTRALIAN horticulture's political lobby group has collapsed.

The Horticulture Australia Council will shut down day-to-day operations and revert to a "taskforce-style" operation, The Weekly Times understands.

The Weekly Times had revealed in September 2009 the organisation was in deep financial trouble.

A source close to HAC has revealed HAC will effectively become operational as a taskforce "if an issue comes up".

And the hours of HAC chief Kris Newton had been reduced to one day a week.

"It’s not unexpected," the source said.

"Few industries were willing to fund them (via membership fees), mainly due to the effect of drought."

Asked if managed investment scheme giants had paid their HAC fees, the source said: "I don’t think so. There were a number (of members) who didn’t pull their weight."

HAC had also become embroiled in controversy last year when Ms Newton emailed senators urging them to allow an increase in Australian Quarantine Inspection Service fees following the offer of a $20 million adjustment carrot from Agriculture Minister Tony Burke.

Exporters and Summerfruit Australia accused HAC of  "treachery" over the incident.