Home » today » News » Draft food supply chain law requires a written purchase agreement and payment term – 2024-03-07 08:57:31

Draft food supply chain law requires a written purchase agreement and payment term – 2024-03-07 08:57:31


MFA invites supply chain participants to complete and submit a published questionnaire

The Ministry of Agriculture and Food has released a consultation document and questionnaire related to Bill for the chain of delivery of agricultural products and foods. Participants in the supply chain are invited to complete the questionnaire.

The law concept wants to improve the supply chain itself and structure it in a way that increases the competitiveness of producers and reduces the imbalance in trade relations.

The creation of a special legal framework for contracts for the purchase of agricultural products is foreseen. The bulk of the value added along the food supply chain goes to traders and processors, and very little remains for farmers. Farmers, as the unit with the weakest bargaining power in the supply chain, need special protection in the conclusion and execution of purchase contracts. In order to achieve it, it is envisaged to introduce minimum terms of validity of the contracts for the purchase of primary agricultural products, which take into account the duration of the production cycle in agriculture, the prohibition of certain contractual clauses in the purchase contracts, as well as terms for payment of the price, which are aimed at towards ensuring a fairer distribution of added value for primary producers in the supply chain.

The settled rules for the execution of the purchase contracts related to the place of execution, measurement and quality and preparation of the production reflect the peculiarities of the production of perishable products, which has a seasonal nature, the consultation document says.

A mandatory written form of contracts for the purchase of primary agricultural products is introduced and the ways in which it can be objectified are defined.

It is planned to create and maintain in the Ministry of Agriculture and Food a public electronic register of wholesalers of agricultural products and food.


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