Farmers in Belgium face violation of contract terms
The organization Belpotato.be, representing the interests of Belgian potato producers, expressed concern about the actions of some processors who unilaterally reduce the volume of potato purchases under already signed contracts.
These unexpected changes have caused a negative reaction from farmers, since many of them are already planning the planting season and concluding contracts for the purchase of seed potatoes.
What is the cause of the problem?
According to Belpotato.be, potato processors believe that in the changed economic situation, contracts contain excess volumes for the upcoming season.
However, this practice of uncoordinated adjustments undermines trust between producers and processors, creating financial risks for farmers.
Legislation and code of conduct
Belpotato.be recalls the existence of the Laruelle Code (2005), which regulates trade relations in the agricultural sector.
In 2006, provisions concerning contracts in the potato industry were added to this code. In 2021, Belpotato.be initiated the first update, and the second update was signed by all members of the organization during Interpom 2023.
Despite the agreements reached, the current situation demonstrates a violation of the principles of mutual respect on the part of individual market participants.
Consequences for farmers
Farmers are faced with uncertainty – several weeks before the start of the planting season, they do not know what volumes of potatoes they will accept.
– Processors are delaying negotiations, not confirming contracts on time.
– Farmers are forced to reconsider sowing strategies, reducing areas or risking overproduction.
– Economic losses – uncoordinated volume adjustments threaten the financial stability of farms.
“It is unacceptable when, just before the start of the planting season, farmers receive a cold shower in the form of a message that they can grow 10-20% less potatoes than previously expected,” said representatives of Belpotato.be.
What does Belpotato.be offer?
- The organization calls for strict compliance with concluded contracts.
- Belpotato.be initiates consultations with all market participants to prevent similar situations in the future.
- Work is underway on mechanisms to protect farmers in order to minimize the risks of violating agreements.
The current situation demonstrates an imbalance in the relationship between potato producers and processors. If processors continue to reduce purchases without agreement with farmers, this may lead to a reduction in production and increased tension in the industry.
Do you think there should be stricter regulations to protect farmers in such situations? Share your opinion in the comments!
