AM: Producer protection will be renewed from January 1st

By: Trademagazin Date: 2025. 01. 10. 12:30

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From the beginning of the year, new rules promoting fair business relations will improve the position of small farms and producers vis-à-vis buyers. Thanks to the producer protection package, farmers will be able to receive the value of their goods more quickly than before, the Ministry of Agriculture (AM) told MTI.

The statement highlighted that thanks to the package of laws adopted by the Parliament last year, late payments by buyers to farmers exceeding 30 days will also be sanctionable from January 1, and in certain cases, buyers who do not pay producers will no longer be able to engage in buying.

The intention of the Ministry of Agriculture is for buying processes to operate within clear rules that protect the position of producers, they emphasized.

According to the information, important components of the package of laws are provisions containing the sharing of risks arising during production and delivery. Since July 1st of last year, these have been mandatory elements of contracts between producers and companies purchasing products and live animals from them in the pig, poultry and fruit and vegetable sectors.

After a six-month grace period, after January 1st, purchasing companies that use inappropriate documents in this regard may also be sanctioned, they highlighted. They added that it also serves to improve the protection of producers that sectoral interprofessional organizations can introduce model contracts in order to widely disseminate good practices.

The announcement indicated that a rule regarding a new legal institution called producer cooperation will also come into force, which is a voluntarily chosen form of cooperation based on the mutual economic interests of the producer and the producer.