Agricultural and Food Supply Chain Act 2023

Chapter 2

Agricultural Unfair Trading Regulations

Power to make regulations

57. (1) The Minister may make regulations about business-to-business relationships in the agricultural and food supply chain (which may, in particular, include provision prohibiting specified practices).

(2) In this Act—

(a) regulations under subsection (1) are referred to as “the Agri-Food Unfair Trading Regulations”, and

(b) a practice prohibited by the Agri-Food Unfair Trading Regulations is referred to as an “unfair trading practice”.

(3) The Minister may prohibit a practice in the Agri-Food Unfair Trading Regulations only if satisfied that the practice—

(a) deviates from good commercial conduct, by reason of being contrary to good faith and fair dealing or by reason of being unilaterally imposed by one trading partner on another,

(b) imposes an unjustified and disproportionate transfer of economic risk from one trading partner to another, or

(c) imposes a significant imbalance of rights and obligations on one trading partner.

(4) The Minister may make provision in Agri-Food Unfair Trading Regulations only if satisfied that it is appropriate having regard to—

(a) the desirability of the promotion of competitive trade in business-to-business relationships in the agricultural and food supply chain,

(b) the interests of users and consumers of agricultural and food products, in particular in relation to quality, value for money and access to choice,

(c) the importance of trading partners in the agricultural and food supply chain conducting their trading relationships in good faith and in a fair, open and transparent manner,

(d) the importance of maintaining freedom of contract between trading partners in the agricultural and food supply chain,

(e) the importance of providing trading partners in the agricultural and food supply chain with reasonable certainty in respect of the risks and costs of trading,

(f) the economic importance to the State of the production, manufacture, processing, supply, distribution, wholesale, retail and food service sectors in respect of agricultural and food products,

(g) the impact on the development and maintenance of strong, innovative, efficient and competitive production, manufacturing, processing and supply bases in the agricultural and food sector,

(h) the impact on the development and maintenance of competitive retail and food service sectors in respect of agricultural and food products,

(i) the desirability of addressing the imbalance where the larger or more powerful trading partner seeks to introduce certain practices or contractual arrangements which are to that party’s advantage,

(j) the potential for the distortion of competition in trade in the agricultural and food sector including ancillary services, and

(k) the importance of limiting the impact on the use of fair and efficiency-creating agreements agreed between parties.

(5) Agri-Food Unfair Trading Regulations may (without prejudice to the generality of subsection (1)) make provision of a kind specified in sections 58 to 65 .

(6) In making Agri-Food Unfair Trading Regulations, the Minister shall have regard, in particular, to Article 3 of the Directive (prohibition of unfair trading practices).

(7) Before making Agri-Food Unfair Trading Regulations the Minister shall consult the Commission of the European Union.