The Netherlands Authority for Consumers and Markets (ACM) has intervened with French fry producer Farm Frites following reports of unrest among potato growers. At the end of November, the company unexpectedly informed growers about a change in the discount system for potatoes with quality defects.
The French fry producer proposed to potato growers to adjust their purchasing terms for 2025 because the quality of many potatoes is worse than expected. According to the Netherlands Authority for Consumers and Markets (ACM), the revised discount system could have significant financial consequences for growers. The very short response time of five days caused additional unrest and led to reports to organizations such as LTO Nederland and the ACM.
Clearer information
Thanks to the regulator's intervention, growers now have more time and clearer information to decide whether to agree to the discount system adjustment. According to the Netherlands Authority for Consumers and Markets (ACM), this strengthens the negotiating position of farmers, who are often dependent on a limited number of large buyers. Potato growers who have already accepted Farm Frites' proposal can reconsider their decision.
A potato grower now reports on the DCA potato forum that growers have been given until December 23rd to make a decision. So, nothing has changed in substance; there's simply more time to weigh the options. Nevertheless, the ACM's concerns have now been addressed, and the authority has discontinued its investigation.
To engage in conversation
The Netherlands Authority for Consumers and Markets (ACM) emphasizes that similar situations occur frequently in the agricultural supply chain, especially when extreme weather conditions impact harvest quality. The regulator therefore urges supply chain partners to discuss potential market and quality issues early on to prevent unrest and pressure on suppliers.
The issue touches on the Unfair Commercial Practices in Agriculture Act (Wet OHP Landbouw), which is intended to protect farmers, growers, and other suppliers from abuse of power by large buyers. The law prohibits, among other things, unilaterally changing contracts and late payments for delivered products. The Netherlands Authority for Consumers and Markets (ACM) oversees compliance with the Unfair Commercial Practices in Agriculture Act and can investigate potential violations.