Parties in the Belgian potato supply chain have reached new agreements with the Federal Department of Economy regarding the model potato contract. This is the result of months of consultations after the conclusion of the contracts this spring caused serious problems and tensions in the sector.
Main point in the new code of conduct regarding the conclusion of potato contracts The parties have now agreed on the timeframe between the offer of the contract and its conclusion. This must now be arranged within a month, according to information provided by the Belgian website Vilt.
It is emphasized that until an agreement is reached, the proposals in the submitted contract are not binding. Growers now have fifteen days to respond to a proposal from a processor offering the contract. If they are late, the proposal will be canceled. The processor then has fifteen days to sign the contract. This means clarity regarding the conclusion of the agreement will be achieved within a month.
The above applies if no counterproposals are made. If counterproposals are made, agreements have been made to that effect. If the buyer submits a counterproposal after a proposed amendment, the grower, in turn, has seven days to respond. Agreements have also been made in the event of no response. In that case, the proposal is considered an agreement, and the contract is binding.
The Farmers' Union responded to Vilt that it was positive about the established deadlines and the addition that negotiations would preferably take place in person: "We are aware that growers will have to be attentive to respond in a timely manner. But it does guarantee clarity for all parties in the short term."