Regulation (EU) No 1308/2013 of the European Parliament and of the CouncilShow full title

Article 148 U.K. Contractual relations in the milk and milk products sector

1. Where a [F1 the Secretary of State] decides that every delivery of raw milk in its territory by a farmer to a processor of raw milk must be covered by a written contract between the parties and/or decides that first purchasers must make a written offer for a contract for the delivery of raw milk by the farmers, such contract and/or such offer for a contract shall fulfil the conditions laid down in paragraph 2.

Where a [F1 the Secretary of State] decides that deliveries of raw milk by a farmer to a processor of raw milk must be covered by a written contract between the parties, [F2 the Secretary of State] shall also decide which stage or stages of the delivery shall be covered by such a contract if the delivery of raw milk is made through one or more collectors.

For the purposes of this Article, a "collector" means an undertaking which transports raw milk from a farmer or another collector to a processor of raw milk or another collector, where the ownership of the raw milk is transferred in each case.

[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 may require that any delivery in raw milk to a processor of raw milk 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 the first subparagraph of paragraph 4 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.]

[F5 2. The contract and/or the 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 volume delivered and the quality or composition of the raw milk delivered,

(ii)

the volume of raw milk which may and/or must be delivered and the timing of such deliveries,

(iii)

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

(iv)

details regarding payment periods and procedures,

(v)

arrangements for collecting or delivering raw milk, and

(vi)

rules applicable in the event of force majeure.

[F5 3. By way of derogation from paragraphs 1 and 1a, a contract and/or an offer for a contract shall not be required where raw milk is 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 2.]

4. All elements of contracts for the delivery of raw milk concluded by farmers, collectors or processors of raw milk, including the elements referred to in point (c) of paragraph 2, shall be freely negotiated between the parties.

[F5 Notwithstanding the first subparagraph, one or more of the following shall apply:

(a) where [F6 the Secretary of State] decides to make a written contract for the delivery of raw milk compulsory in accordance with paragraph 1, [F7 the Secretary of State] may establish:

(i)

an obligation for the parties to agree on a relationship between a given quantity delivered and the price payable for that delivery;

(ii)

a minimum duration, applicable only to written contracts between a farmer and the first purchaser of raw milk; such a minimum duration shall be at least six months, and shall not impair the proper functioning of the internal market;]

(b) where [F6 the Secretary of State] decides that the first purchaser of raw milk must make a written offer for a contract to the farmer in accordance with paragraph 1, [F7 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 internal market.

The second subparagraph shall be without prejudice to the farmer's right to refuse such a minimum duration provided that he does so in writing. In such a case, the parties shall be free to negotiate all elements of the contract, including the elements referred to in point (c) of paragraph 2.

F8 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9 6. The Secretary of State may make regulations setting out measures necessary for the uniform application of points (a) and (b) of paragraph 2, and paragraph 3, of this Article.]

Textual Amendments

F1 Words in Art. 148(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, 8(a)(i); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 148(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, 8(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. 148(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, 8(b); 2020 c. 1, Sch. 5 para. 1(1)

F5 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.

F6 Words in Art. 148(4) 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, 8(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 148(4) 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, 8(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F8 Art. 148(5) omitted (31.12.2020) by virtue of 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, 8(d); 2020 c. 1, Sch. 5 para. 1(1)

F9 Art. 148(6) substituted (31.12.2020) by The Agriculture (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1402), regs. 1(3), 5(7); 2020 c. 1, Sch. 5 para. 1(1)