Acm.nl uses cookies to analyze how the website is used, and to improve the user experience. Read more about cookies

ACM: Potato growers of Farm Frites get more time to decide on contract changes

Summary

  • ACM has taken action against fries manufacturer Farm Frites.
  • New contractual conditions of Farm Frites have led to unrest among potato growers.
  • Following an ACM intervention, growers now have more time and information to make a decision.

Following reports of unrest among potato growers, the Netherlands Authority for Consumers and Markets (ACM) has taken action against Dutch fries manufacturer Farm Frites. In late November, Farm Frites informed potato growers of a sudden change to the discount system for potatoes with quality defects. Since the quality of this year’s potato harvest is lower than usual, the changed discount system can have significant financial consequences for growers. The very short response deadline of 5 days added to the unrest, and resulted in reports being filed with, among other organizations, the Dutch Agriculture and Horticulture Association (LTO), the Dutch Producer Organization for Ware Potatoes (POC Nederland), and ACM. As a result of an ACM intervention, growers now have more time and clearer information to decide whether they wish to agree with the changes to the discount system. This strengthens the bargaining position of the growers in the chain.

Adjustments following ACM’s intervention

After discussions with ACM, Farm Frites has informed the potato growers that:

  • they get more time to decide whether or not they agree with the discount system;
  • potato growers that have already agreed can reconsider their decision;
  • in the new discount system, the aim is to reject fewer potatoes.

As a result of these measures, potato growers now have sufficient scope for making a well-informed decision. For example, they have sufficient time for having the quality of their potatoes independently tested. If growers do not agree with Farm Frites’s proposal, the current conditions will remain in place. With the adjustments, ACM’s concerns have been taken away, and ACM has ended the investigation.

Call on the sector

ACM sees that, in the agricultural sector, situations similar to this occur quite frequently, for example, if weather conditions greatly affect a year’s harvest. If such situations occur, ACM calls on production chain participants to sit down together on time and discuss possible market and quality problems. Early discussions can prevent unrest among and pressure on suppliers.

Fair trading practices in the agricultural sector

The Dutch Act regarding unfair trading practices in the agricultural and food supply chain (in Dutch: Wet OHP Landbouw) is aimed at strengthening the positions of farmers, growers, and fishermen vis-à-vis larger market participants. That is why this act prohibits, among other practices, unilateral changes to contracts, and late payments for delivered agricultural products. ACM enforces compliance with this act, and can launch investigations into possible violations.

If you believe that a buyer fails to comply with the Dutch Act regarding unfair trading practices in the agricultural and food supply chain, or if you seek more information about this law, please refer to Fair trade in the agricultural sector | ACM (in Dutch).

See also

Back to top