Will competition rules be clear in the future?

The previously announced relaxation of competition rules is currently being translated into Dutch legislation. This also applies to tackling unfair commercial practices. In any case, LTO Nederland hopes for more clarity for farmers and horticulturists.

Last spring, Minister Carola Schouten (Agriculture, Nature and Food Quality) promised farmers and horticulturists that they would more power will get in the chain. To this end, the government has now submitted 2 bills: 1 to amend the Competition Act and 1 to tackle unfair commercial practices. In a response, LTO Nederland urges, among other things, better information provision from the government. What is allowed and what is not allowed in agriculture?

Exceptions are already in effect
With the amendment of the Competition Act, the law establishes what competition exceptions exist for farmers and horticulturists. The exceptions are already in force through European legislation (through the Common Agricultural Policy). "In that sense, nothing will change," says Klaas Johan Osinga of LTO Nederland. "However, the change in Dutch legislation will hopefully make the existing exceptions more visible. That is why we insist on good information about the possibilities for cooperation between farmers and horticulturists in the market."

What is new, however, is the legislation against unfair commercial practices that was introduced at European level last spring. This must now be transposed into Dutch law. "The most important thing that can change with the new legislation is that payment terms improve, so that farmers and horticulturists get their money earlier. We are talking about within 30 days for fresh products and within 60 days for non-perishable products. With the emphasis on 'can change ', because if the suppliers do not file any violations of these new rules, nothing will change. This will also have to be looked at within cooperatives."

Increasing purchasing power
The discussion about unfair trading practices has been going on for years. According to LTO Nederland, there is now a legal basis that should help farmers and horticulturists if they are confronted with it. The organization does place some caveats with the current bill. For example, attention is being drawn to the increasing purchasing power of buyers.

The government must also clarify the division of powers between the new legislation and the existing arbitration tribunals in the agricultural sector, including arable farming. The Netherlands Authority for Consumers & Markets (ACM) will also play a role in this, in addition to a newly established disputes committee.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.