Minister for Agriculture, Food and the Marine, Charlie McConalogue today (Tuesday, May 2) announced the launch of an online survey by the department’s Unfair Trading Practices (UTP) Enforcement Authority.

This is the second annual survey of primary producers, following an initial survey last year which assisted the enforcement authority to establish baseline levels of awareness of the UTP regulations and to inform the issues of most concern to suppliers.

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.”

Survey

This year’s survey of primary producers is looking to establish two things:

  1. Current awareness of the UTP Regulations 2021, including understanding of the key protections afforded to suppliers under these regulations;
  2. The extent to which UTP impact suppliers, and the factors that might influence suppliers to make a complaint.

The DAFM has said that 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 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. 

Unfair Trading Practices

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.

10 black UTPs (prohibited in all circumstances):

  1. Payment later than 30 days for perishable agricultural and food products;
  2. Payment later than 60 days for other agricultural and food products;
  3. Short-notice cancellations of perishable agricultural and food products;
  4. Unilateral contract changes by the buyer;
  5. Payment not related to a specific transaction;
  6. Risk of loss and deterioration transferred to the supplier;
  7. Refusal of written confirmation of a supply agreement by the buyer, despite request of the supplier;
  8. Misuse of trade secrets by the buyer;
  9. Commercial retaliation by the buyer;
  10. Transferring the costs of examining customer complaints to the supplier.

6 grey UTPs (prohibited unless the parties agree beforehand):

  1. The buyer returns unsold products to the supplier without paying for those unsold products;
  2. Payment by the supplier for stocking, display and listing;
  3. Payment by the supplier for promotion;
  4. Payment by the supplier for marketing;
  5. Payment by the supplier for advertising;
  6. 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 Agri-Food Regulator establishment

The Agricultural and Food Supply Chain Bill was approved by 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.

AGRI-FOOD REGULATOR DAFM UNFAIR TRADING PRACTICES