Denis Naughten (Roscommon-Galway, Independent)
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131. To ask the Minister for Agriculture, Food and the Marine his plans to amend the unfair trading practices legislation to make specific provision for farmers that supply retailers via processors; and if he will make a statement on the matter. [26285/22]

Charlie McConalogue (Donegal, Fianna Fail)
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As the Deputy will be aware, the Government is committed to establishing a new statutory body to enforce the UTP Directive, and to perform a price and market analysis function in the agri-food supply chain.

Pending the drafting of primary legislation for this new office, and in advance of the EU deadline for transposition of the UTP Directive, I signed a Statutory Instrument transposing the Directive into Irish law in April 2021. This SI transposed the Directive as it stood, as any amendments would have required primary legislation. I also established an interim enforcement authority in my Department which has all the necessary legal powers to enforce the UTP Regulations.

The UTP Directive and the implementing Regulations apply to business-to-business relationships in the agriculture and food supply chain, subject to certain annual turnover thresholds.

The business-to-business relationship concerns the contractual arrangement between suppliers and buyers. A farmer supplying to a processor is protected from 16 specific unfair trading practices in relation to their contract with that processor, whether the contract is oral or in writing. Similarly, the processor would be protected from unfair trading practices in their dealings with a retailer who is in a higher threshold bracket.

The Deputy will also be aware that on 22nd March last, the Government approved the priority drafting of the General Scheme of the Agricultural and Food Supply Chain Bill 2022. While the Bill allows for changes to be made to the unfair trading practices listed in the current legislation, the UTP rules enforced by the new Office will continue to be based on the business to business relationship between suppliers and buyers. As with any legislation, the impact of the Regulations, and of the Bill when enacted, will be reviewed over time to ensure they are having the effect intended.

In addition to the enforcement role the Office will have a very important price and market reporting and analysis function which will ensure the increased availability of market information with a view to strengthening the position of farmers, fishers and other suppliers in the agricultural and food supply chain against larger buyers with greater bargaining power.   This new office may commission reports on what is happening in markets and on arrangements all along the agri food supply chain and may make recommendations on how matters can be improved, but moreover can provide important information to farmers to allow them improve their decision making. 

I am confident that the new office will help strengthen the position of our farmers, fishers, and other suppliers of agricultural and food products in negotiating a fairer price for their produce and it is my intention that the new Office of Fairness and Transparency in the Agri-Food Supply chain will be established over the course of this year. I am committed to delivering this office this year to help further support our farm families and their businesses.