Thomas Lyons The Unfair Trading Practices (UTP) Enforcement Authority of the Department of Agriculture, Food and the Marine has launched an online survey for primary producers. This is the second annual survey and aims to establish the current awareness of the UTP Regulations 2021 and the extent to which they impact suppliers. The survey will also determine the factors that might influence suppliers to make a complaint. The survey will help the enforcement authority to establish baseline levels of awareness of the UTP regulations and to inform the issues of most concern to suppliers. The survey is also seeking to establish baseline awareness levels of the key functions and role planned for An Rialálaí Agraibhia (the Agri-food Regulator). This is a new office to be established under the Agricultural and Food Supply Chain Bill currently progressing through the Oireachtas.
Minister for Agriculture, Food and the Marine, Charlie McConalogue, has encouraged all primary producers to take five minutes of their time to provide this important feedback. The online survey results, along with the results of a separate phone survey of downstream agri-food business suppliers, will be processed anonymously by an independent market research company. The regulations prohibit 16 UTPs – 10 (black) UTPs which are prohibited in all circumstances, and a further six (grey) UTPs which are prohibited unless the parties agree clearly and unambiguously beforehand.
The 10 black UTPs that are prohibited in all circumstances include payment later than 30 days for perishable agricultural and food products, payment later than 60 days for other agricultural and food products, short-notice cancellations of perishable agricultural and food products, unilateral contract changes by the buyer, payment not related to a specific transaction, risk of loss and deterioration transferred to the supplier, refusal of written confirmation of a supply agreement by the buyer, despite request of the supplier, misuse of trade secrets by the buyer, commercial retaliation by the buyer, and transferring the costs of examining customer complaints to the supplier. The six grey UTPs that are prohibited unless the parties agree beforehand include the buyer returning unsold products to the supplier without paying for those unsold products, payment by the supplier for stocking, display and listing, payment by the supplier for promotion, payment by the supplier for marketing, payment by the supplier for advertising, and payment by the supplier for staff of the buyer, fitting out premises.
The regulations afford protection for any supplier of agricultural and food products with a turnover of up to €350 million subject to the supplier’s turnover being lower than the buyer’s turnover within stated categories. A supplier is defined as an agricultural producer or any natural or legal person who sells agricultural and food products. A buyer is defined as any natural or legal person or any public authority which buys agricultural and food products. The regulations apply only to business-to-business relationships and do not cover sales to consumers.
The Agricultural and Food Supply Chain Bill was approved by the government for presentation to the Houses of the Oireachtas in November 2022 and is currently progressing through the legislative process. This Bill, when enacted, will establish a new independent statutory authority to be known as An Rialálaí Agraibhia (The Agri-Food Regulator). The enabling provisions in the Bill will provide for the transfer of responsibility of UTP enforcement functions from the department’s Unfair Trading Practices Enforcement Authority to the remit of the regulator. The department has said the Bill will also grant the regulator additional powers to promote fairness and transparency in the agricultural and food supply chain.
Minister McConalogue said: “This survey represents a valuable opportunity for farmers and fishers to let the relevant authorities know if they are being treated unfairly by the buyers of their produce. I strongly encourage all our primary producers [to] take five minutes of their time to provide this important feedback. I look forward to receiving the survey findings in due course.”
The survey will help the enforcement authority to establish baseline levels of awareness of the UTP regulations and to inform the issues of most concern to suppliers. The survey is also seeking to establish baseline awareness levels of the key functions and role planned for An Rialálaí Agraibhia (the Agri-food Regulator). This is a new office to be established under the Agricultural and Food Supply Chain Bill currently progressing through the Oireachtas.
The online survey results, along with the results of a separate phone survey of downstream agri-food business suppliers, will be processed anonymously by an independent market research company. The regulations prohibit 16 UTPs – 10 (black) UTPs which are prohibited in all circumstances, and a further six (grey) UTPs which are prohibited unless the parties agree clearly and unambiguously beforehand.
The 10 black UTPs that are prohibited in all circumstances include payment later than 30 days for perishable agricultural and food products, payment later than 60 days for other agricultural and food products, short-notice cancellations of perishable agricultural and food products, unilateral contract changes by the buyer, payment not related to a specific transaction, risk of loss and deterioration transferred to the supplier, refusal of written confirmation of a supply agreement by the buyer, despite request of the supplier, misuse of trade secrets by the buyer, commercial retaliation by the buyer, and transferring the costs of examining customer complaints to the supplier. The six grey UTPs that are prohibited unless the parties agree beforehand include the buyer returning unsold products to the supplier without paying for those unsold products, payment by the supplier for stocking, display and listing, payment by the supplier for promotion, payment by the supplier for marketing, payment by the supplier for advertising, and payment by the supplier for staff of the buyer, fitting out premises.
The regulations afford protection for any supplier of agricultural and food products with a turnover of up to €350 million subject to the supplier’s turnover being lower than the buyer’s turnover within stated categories. A supplier is defined as an agricultural producer or any natural or legal person who sells agricultural and food products. A buyer is defined as any natural or legal person or any public authority which buys agricultural and food products. The regulations apply only to business-to-business relationships and do not cover sales to consumers.
The Agricultural and Food Supply Chain Bill was approved by the government for presentation to the Houses of the Oireachtas in November 2022 and is currently progressing through the legislative process. This Bill, when enacted, will establish a new independent statutory authority to be known as An Rialálaí Agraibhia (The Agri-Food Regulator). The enabling provisions in the Bill will provide for the transfer of responsibility of UTP enforcement functions from the department’s Unfair Trading Practices Enforcement Authority to the remit of the regulator. The department has said the Bill will also grant the regulator additional powers to promote fairness and transparency in the agricultural and food supply chain.
