Belpotato.be Calls for Signed Contracts to be Correctly Executed
The offers from certain potato buyers, who unilaterally lower contracted quantities without consulting parties in contracts already signed, were recently described as “surprising” by Belpotato.be.
As explained through a recent Belpotato.be release, the processing business believes that, due to the changed economic climate, there is too much proposed tonnage in potato contracts for the upcoming growing season.
“Since the start of Belpotato.be, potato contracts, contract conditions, and their correct compliance have been a major focus. In recent years, Belpotato.be, led by the FPS Economy, has made considerable efforts to achieve an improved and more balanced agreement,” the Belpotato.be representatives added.
The 2005 Laruelle code, also known as the contractual agricultural convention, has an appendix that contains the code of conduct for contract negotiations in the potato industry, Belpotato.be experts explained. Ensuring a more equitable trade relationship between agricultural products and their suppliers or consumers is the goal of this convention. The code of conduct was added to the convention for the potato industry in 2006. Belpotato.be was the driving force behind the initial update in 2021. All Belpotato.be members presented and signed the second update of this code of conduct during Interpom last year.
“It was only a few months ago that Boerenbond, ABS, FWA, Fiwap, and Belgapom agreed to the update of the code of conduct. The consultation that preceded it was sometimes difficult, the road was long but everything always happened in a constructive atmosphere with respect for all parties at the table,” according to a recent Belpotato.be announcement.
The unilateral lowering of the contracted quantity, which has previously been signed by both parties, is improper and unprecedented in Belpotato.be’s opinion. Additionally, Belpotato.be highlights that it is inimical to the potato producers to not confirm with the farmers for weeks how big the contract quantity will be. For a long time, farmers have been occupied with creating a cultivation strategy and completing any potential cultivation contracts that are required for this. Since the planting season is quickly approaching, the potato producer begins negotiating contracts for the delivery of the seed potatoes once everything is in order.
“It is unacceptable that at that moment, just before the planting season starts, you get the cold shower over you with the message that you can grow 10 or 20% less potatoes under contract than previously anticipated. Mutual respect and trust are essential for a good relationship between farmers and their buyers and these are precisely what several actors in the sector are completely lacking. Belpotato.be therefore calls for more respect for the trade relationship between potato producers and buyers,” the Belpotato.be representatives also mentioned.
So, Belpotato.be urgently asks that all parties adhere to the agreements that have been reached and provided for. As a result, the trade association will look into ways to prevent the current circumstance in the future. The trade organization is in a great position to consult constructively with all parties in the chain during times of turbulence in the potato market.
