The Minister for Agriculture, Food and the Marine, Charlie McConalogue, T.D., today signed Statutory Instrument No. 198 of 2021 which sets out the Regulations to give effect in Irish law to EU Directive No. 2019/633 on Unfair Trading Practices in business-to-business relationships in the agricultural and food supply chain.
The Regulations will be known as the European Union (Unfair Trading Practices in the agricultural and food supply chain) Regulations 2021 and will come into effect from 1 July 2021. The Regulations apply to agreements for the supply of agricultural and food products. This includes certain non-food products. There are 16 Unfair Trading Practices (UTPs) included in the Regulations, 10 of which are prohibited in all circumstances, and six UTPs, which are prohibited unless the parties agree clearly and in an unambiguous manner beforehand.
New supply agreements (oral and written) must be in compliance with the requirements of the Regulations by 1 July 2021; contracts (oral and written) that were concluded before today (28 April) must be brought into line within 12 months of that date. The Regulations do not apply to agreements between suppliers and consumers.
Minister McConalogue stated, “I am very pleased to transpose the UTP Directive into Irish law to-day. One of the key principles of the UTP Directive is to protect farmers, farmers’ organisations and other weaker suppliers of agricultural and food products against stronger buyers. These Regulations will help to provide that protection and are a significant step in progressing towards a more even playing field for our agricultural producers.”
This follows the launch of a public consultation earlier this week on the proposed establishment of a new Office in line with a commitment in the Programme for Government to establish a National Food Ombudsman and which requires primary legislation.
Minister McConalogue added, “Pending the outcome of the public consultation concerning the establishment of a new Office under primary legislation, these Regulations, as an interim measure, provide that the Enforcement Authority required to enforce the Directive will be established in my Department. The Authority will have the necessary statutory powers to investigate complaints, carry out investigations on its own initiative and initiate legal proceedings for breaches of the Unfair Trading Practices (UTPs) prohibited under the Directive. My Department will engage with stakeholders in the coming months to assist their understanding of the new rules. I am committed to delivering an office that will bring much-needed transparency to our sector that will ultimately help our farmers and primary producers.”
Minister of State Senator Pippa Hackett said, “I believe the signing of these Regulations which will enable the enforcement of the UTP Directive, and the future establishment of the NFO will be of benefit to all sectors, including the horticulture sector, and will help to create the conditions for fair and effective supply relationships in the market place.”
Minister of State Martin Heydon T,D. said, “I welcome this step in ensuring fairness in the food supply chain – building trust and transparency along the supply chain is in the interests of everyone in the food system, especially for famers and food producers. This transparency can be a source of competitive advantage in the future as we continue to expand in existing markets and grow access for Irish produce in new markets.”
The Regulations can be found at gov.ie - Unfair Trading Practices (UTP) Enforcement Authority (www.gov.ie) .
The new UTP Enforcement Authority can be contacted at UTP@agriculture.gov.ie .
Note for Editor:
The UTP Directive (Directive (EU) No. 2019/633 of the European Parliament and of the Council of 17 April 2019) now transposed into Irish law deals with unfair trading practices in business-to-business relationships in the agricultural and food supply chain.
The UTP Directive seeks to protect weaker suppliers against unfair trading practices by stronger buyers in the agricultural and food supply chain. The Directive
- applies to business-to-business relationships in the agricultural and food supply chain
- prohibits 10 unfair trading practices (commonly referred to as ‘black’ UTPs)
- Payments 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
- Payments not related to a specific transaction
- Risk of loss and deterioration transferred to the supplier
- Refusal of a 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
- Transferring the costs of examining customer complaints to the supplier
- prohibits 6 unfair trading practices unless agreed between both parties beforehand subject to certain conditions (commonly referred to as ‘grey’ UTPs)
- Return of unsold products
- Payment of the supplier for stocking, display and listing
- Payment of the supplier for promotion
- Payment of the supplier for marketing
- Payment of the supplier for advertising
- Payment of the supplier for staff of the buyer, fitting out premises
- Provides for the establishment of an Enforcement Authority, which will have
- o Power to act upon a complaint or act on its own initiative
- o Power to investigate
- o Power to terminate an infringement
- o Power to publish decisions
A supplier is defined as an agricultural producer or any natural or legal person, including producer organisations, organisations of suppliers and associations of such organisations who sells agricultural and food products.
A buyer is defined as any natural or legal person or any public authority who buys agricultural and food products.
The Regulations do not provide for arrangements between suppliers and consumers.
The agricultural and food products covered by the Regulations are products listed in Annex I to the Treaty of the Functioning of the European Union as well as products not listed in that Annex, but processed for use as food using products listed in that Annex. This includes agri-food products and certain non-food agricultural products. A link to Annex 1 can be found here.
ENDS