Regulation (EU) No 1308/2013 of the European Parliament and of the CouncilDangos y teitl llawn

Article 168 U.K. Contractual relations

1. Without prejudice to Article 148 concerning the milk and milk products sector and Article 125 concerning the sugar sector, if [F1 the Secretary of State] decides, in respect of agricultural products from a sector listed in Article 1(2), other than milk and milk products and sugar:

(a) that every delivery in [F2 the United Kingdom] of those products by a producer to a processor or distributor must be covered by a written contract between the parties; and/or

(b) that the first purchasers must make a written offer for a contract for the delivery in [F2 the United Kingdom] of those agricultural products by the producer,

such a contract or such an offer for a contract shall fulfil the conditions laid down in paragraphs 4 and 6 of this Article.

[F3 1a. Where [F4 the Secretary of State does] not make use of the possibilities provided for in paragraph 1 of this Article, a producer, a producer organisation or an association of producer organisations, in respect of agricultural products in a sector referred to in Article 1(2) other than the milk, milk products and sugar sector, may require that any delivery of its products to a processor or distributor be the subject of a written contract between the parties and/or be the subject of a written offer for a contract from the first purchasers, under the conditions laid down in paragraph 4 and in the first subparagraph of paragraph 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory without prejudice to the possibility for the parties to make use of a standard contract drawn up by an interbranch organisation.]

2. Where the [F5 Secretary of State] decides that deliveries of the products covered by this Article by a producer to a processor must be covered by a written contract between the parties, [F6 the Secretary of State] shall also decide which stage or stages of the delivery shall be covered by such a contract if delivery of the products concerned is made through one or more intermediaries.

[F7 The Secretary of State must ensure that any provisions made] under this Article do not impair the proper functioning of the [F8 market in the United Kingdom].

3. In the case described in paragraph 2, the [F9 Secretary of State] may establish a mediation mechanism to cover cases in which there is no mutual agreement to conclude such a contract, thereby ensuring fair contractual relations.

[F10 4. Any contract or offer for a contract referred to in paragraphs 1 and 1a shall:]

(a) be made in advance of the delivery;

(b) be made in writing; and

(c) include, in particular, the following elements:

(i)

the price payable for the delivery, which shall:

• be static and be set out in the contract, and/or

• be calculated by combining various factors set out in the contract, which may include market indicators reflecting changes in market conditions, the quantities delivered and the quality or composition of the agricultural products delivered,

(ii)

the quantity and quality of the products concerned which may or must be delivered and the timing of such deliveries,

(iii)

the duration of the contract, which may include either a definite duration or an indefinite duration with termination clauses,

(iv)

details regarding payment periods and procedures,

(v)

arrangements for collecting or delivering the agricultural products, and

(vi)

rules applicable in the event of force majeure.

[F10 5. By way of derogation from paragraphs 1 and 1a, a contract or an offer for a contract shall not be required where the products concerned are delivered by a member of a cooperative to the cooperative of which he is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4.]

6. All elements of contracts for the delivery of agricultural products concluded by producers, collectors, processors or distributors, including those elements referred to in point (c) of paragraph 4, shall be freely negotiated between the parties.

Notwithstanding the first subparagraph, one or both of the following shall apply:

(a) where [F11 the Secretary of State] decides to make written contracts for the delivery of agricultural products compulsory in accordance with paragraph 1, [F12 the Secretary of State] may establish a minimum duration, applicable only to written contracts between a producer and the first purchaser of the agricultural products. Such a minimum duration shall be at least six months and shall not impair the proper functioning of the [F13 market in the United Kingdom];

(b) where [F11 the Secretary of State] decides that the first purchaser of agricultural products must make the producer a written offer for a contract in accordance with paragraph 1, [F12 the Secretary of State] may provide that the offer must include a minimum duration for the contract, set by national law for this purpose. Such a minimum duration shall be at least six months and shall not impair the proper functioning of the [F13 market in the United Kingdom].

The second subparagraph shall be without prejudice to the producer's right to refuse such a minimum duration provided that he does so in writing. In this case, the parties shall be free to negotiate all elements of the contract, including those elements referred to in point (c) of paragraph 4.

[F14 7. The Secretary of State must ensure that any provisions made to implement the options referred to in this Article do not impair the proper functioning of the market in the United Kingdom.]

[F15 8. The Secretary of State may make regulations setting out the measures necessary for the uniform application of points (a) and (b) of paragraph 4, and paragraph 5, of this Article.]

Textual Amendments

F1 Words in Art. 168(1) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(a)(i); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 168(1) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F3 Inserted by Regulation (EU) 2017/2393 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), (EU) No 1306/2013 on the financing, management and monitoring of the common agricultural policy, (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products and (EU) No 652/2014 laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material.

F4 Words in Art. 168(1a) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(b); 2020 c. 1, Sch. 5 para. 1(1)

F5 Words in Art. 168(2) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(c)(i)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Art. 168(2) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(c)(i)(bb); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 168(2) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Art. 168(2) substituted (31.12.2020) by The Agriculture (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1402), regs. 1(3), 5(9)(a); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Art. 168(3) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(d); 2020 c. 1, Sch. 5 para. 1(1)

F10 Substituted by Regulation (EU) 2017/2393 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), (EU) No 1306/2013 on the financing, management and monitoring of the common agricultural policy, (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products and (EU) No 652/2014 laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material.

F11 Words in Art. 168(6) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(e)(i); 2020 c. 1, Sch. 5 para. 1(1)

F12 Words in Art. 168(6) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(e)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F13 Words in Art. 168(6) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(e)(iii); 2020 c. 1, Sch. 5 para. 1(1)

F14 Art. 168(7) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/828), regs. 1, 24(f); 2020 c. 1, Sch. 5 para. 1(1)

F15 Art. 168(8) substituted (31.12.2020) by The Agriculture (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1402), regs. 1(3), 5(9)(b); 2020 c. 1, Sch. 5 para. 1(1)