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News Sugar beets

Poles fight German sugar industry

24 August 2020 - Niels van der Boom

The Polish watchdog for consumer and business rights (UOKiK) has filed a lawsuit against sugar producer Pfeifer & Langen. It accuses the Polish branch of this German sugar producer of unfair contract terms. Earlier, the organization already filed a complaint against Südzucker Polska.

More sugar beet processors in Poland can expect an investigation from the institute. It announces that it will investigate the contractual agreements of all processors for unfair practices that disadvantage growers. Pfeifer & Langen is one of the largest sugar producers in Poland according to the UOKiK.

Mandatory seed collection
The cultivation contract of the German processor states that growers are obliged to purchase sugar beet seed from Pfeifer & Langen. If they don't, the processor has the right to reject the beets. The UOKiK can impose a fine for this amounting to 3% of their annual financial result.

Last year, the watchdog started a similar investigation into the contract conditions of Südzucker Polska. The UOKiK says themselves that protecting Polish farmers is one of their core tasks. Therefore, all processors in the country are checked.

Agrifood under the microscope
The watchdog has just completed a survey of the 100 largest agri-food companies in the country. Companies that did not fulfill their contractual obligations, or did not pay on time, for example, were called upon to do so as quickly as possible. The companies that did not respond to this are now being further investigated. These include the Polish branch of Makro and the French supermarket chain Intermarché in the country.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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