The Unfair Trading Practices (UTP) enforcement authority set up in 2021 to investigate potential breaches of agri-food supply chain rules opened no investigations into suspected cases of unfair treatment of farmers by the end of last year.
The authority received 10 complaints from actors with the agri-food supply chain in 2022, six of which were found to be outside the scope of the rules.
Another complaint was subsequently withdrawn and required no further action.
By the end of last year, the remaining three complaints were being screened by the authority to check if they fell within the remit of UTP rules before decisions could be made whether to investigate any of the complaints in detail.
Separately, seven queries submitted to the authority were clarified by it in 2022.
Banned practices
Issues banned by the UTP regulations include the cancelling orders of perishable agri-food goods short-notice, failure to make payments on time, refusing farmers’ requests to confirm oral agreements in writing and the threatening of commercial retaliation against suppliers who exercise their statutory rights.
The enforcement authority itself was established in 2021 as an interim measure before the Agri-Food Supply Chain bill could be passed by the Oireachtas allowing for a new Agri-Food Regulator’s office.
Minister for Agriculture Charlie McConalogue announced earlier this year that Niamh Lenehan will head up the new statutory body once it is set up.
The regulator will have the ability to impose fines of up to €10m on retailers and agri-food processors, if found to have breached relevant trading and fairness rules.
Surveys
The complaint figures come with the publication of the survey results by the authority which show that only one in seven farmers know they are protected from 16 unfair trading practices by law.
Only half of farmers and businesses have ever heard of the UTP regulations signed into law.
Around a quarter of farmers and over half of businesses surveyed claimed to have been subjected to unfair and outlawed supply chain practices in past two years.
The authority’s report states that the “main reason for not raising the issue is fear of retaliation from the buyer and that the practices would be considered common practice”.
Minister McConalogue encouraged producers to contact the authority if they suspect to have been on the receiving end of prohibited agri-food trading practices.
“It is encouraging that this year’s surveys have found that agri-food suppliers have greater awareness and understanding of the UTP Regulations and the protections they offer than was the case last year,” he said.
“However, unfortunately the surveys also indicate that some suppliers still continue to experience unfair trading practices in their dealings with their buyers.”
“The surveys also reinforce one of last year’s key findings that there are underlying factors that act to prevent suppliers from raising breaches of the regulations with their buyer, their representative organisation or the enforcement authority.
“I would strongly encourage suppliers to raise matters relating to unfair trading practices with the enforcement authority where appropriate to do so”.
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The Unfair Trading Practices (UTP) enforcement authority set up in 2021 to investigate potential breaches of agri-food supply chain rules opened no investigations into suspected cases of unfair treatment of farmers by the end of last year.
The authority received 10 complaints from actors with the agri-food supply chain in 2022, six of which were found to be outside the scope of the rules.
Another complaint was subsequently withdrawn and required no further action.
By the end of last year, the remaining three complaints were being screened by the authority to check if they fell within the remit of UTP rules before decisions could be made whether to investigate any of the complaints in detail.
Separately, seven queries submitted to the authority were clarified by it in 2022.
Banned practices
Issues banned by the UTP regulations include the cancelling orders of perishable agri-food goods short-notice, failure to make payments on time, refusing farmers’ requests to confirm oral agreements in writing and the threatening of commercial retaliation against suppliers who exercise their statutory rights.
The enforcement authority itself was established in 2021 as an interim measure before the Agri-Food Supply Chain bill could be passed by the Oireachtas allowing for a new Agri-Food Regulator’s office.
Minister for Agriculture Charlie McConalogue announced earlier this year that Niamh Lenehan will head up the new statutory body once it is set up.
The regulator will have the ability to impose fines of up to €10m on retailers and agri-food processors, if found to have breached relevant trading and fairness rules.
Surveys
The complaint figures come with the publication of the survey results by the authority which show that only one in seven farmers know they are protected from 16 unfair trading practices by law.
Only half of farmers and businesses have ever heard of the UTP regulations signed into law.
Around a quarter of farmers and over half of businesses surveyed claimed to have been subjected to unfair and outlawed supply chain practices in past two years.
The authority’s report states that the “main reason for not raising the issue is fear of retaliation from the buyer and that the practices would be considered common practice”.
Minister McConalogue encouraged producers to contact the authority if they suspect to have been on the receiving end of prohibited agri-food trading practices.
“It is encouraging that this year’s surveys have found that agri-food suppliers have greater awareness and understanding of the UTP Regulations and the protections they offer than was the case last year,” he said.
“However, unfortunately the surveys also indicate that some suppliers still continue to experience unfair trading practices in their dealings with their buyers.”
“The surveys also reinforce one of last year’s key findings that there are underlying factors that act to prevent suppliers from raising breaches of the regulations with their buyer, their representative organisation or the enforcement authority.
“I would strongly encourage suppliers to raise matters relating to unfair trading practices with the enforcement authority where appropriate to do so”.
Read more
Agri-food Regulator bill to be backed by Dáil
Meat factories and supermarkets to reveal margins and salaries
Meath woman Niamh Lenehan to lead Agri-Food Regulator
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