The Netherlands Authority for Consumers and Markets (ACM) has intervened in a contractual situation involving fries producer Farm Frites and its Dutch potato growers to ensure suppliers are given additional time and clearer information before deciding whether to accept changes to the pricing of potatoes with quality deviations.

In late November, Farm Frites informed its contracted growers of proposed adjustments to its discount system for the 2025 potato crop, following a higher-than-expected level of quality deviations in the harvest. Growers were initially given a five-day period to respond to the revised terms, a timeframe that prompted concerns among suppliers.

Following complaints from growers, the ACM assessed the situation under the Unfair Commercial Practices in Agriculture Act, legislation designed to protect farmers and other suppliers from abusive practices by large buyers, including unilateral contract changes.

According to the ACM, the proposed adjustment, combined with the short decision period, could have significant financial consequences for growers. The authority stated that extending the timeframe and improving the clarity of information strengthens the negotiating position of farmers, who are often dependent on a limited number of large buyers. Growers who had already agreed to the proposed changes are now able to reconsider their decision.

The regulator stressed that the content of the revised discount system itself has not been altered. The only change concerns the process, with growers now given more time to assess the proposal and make an informed choice. The ACM said that, with these procedural adjustments in place, its concerns have been addressed and the investigation has been closed.

ACM also noted that similar situations occur more frequently across agricultural supply chains, particularly when extreme weather conditions affect crop quality. The authority encouraged supply chain partners to enter discussions at an early stage when market or quality issues arise, in order to avoid unrest and pressure among suppliers.

The Unfair Commercial Practices in Agriculture Act prohibits practices such as unilateral contract modifications and late payments for delivered products. The ACM is responsible for supervising compliance with the legislation and can investigate potential violations.