Stronger protection for farmers in the Spanish food supply chain

Automatic summary, not yet reviewed

1. The law expands the scope of Law 12/2013: it now applies to all commercial relationships in the food supply chain, even between two SMEs or without dependency, as long as the price exceeds 2,500 euros.
2. Food contracts must be signed in writing before deliveries begin, and must state the price, payment terms and how to resolve disputes. The price paid to the primary producer must at least cover the producer's actual production costs.
3. New unfair trading practices are banned, such as canceling orders of perishable products shortly before delivery, demanding payments unrelated to the sale, or charging for advertising. These bans work in both directions, also against the seller.
4. A digital register of contracts with primary producers is created, and penalties are tougher: fines range from €250 to €1,000,000 depending on severity, and those sanctioned for serious offenses are published quarterly.
5. The Food Information and Control Agency becomes the contact point with the European Commission and with regional authorities, which must designate their own enforcement authorities.
6. The law takes effect the day after its publication in the official gazette (BOE). Contracts already signed must be adapted to the new rules before May 1, 2022.

Who it affects

• Farmers, livestock breeders and other primary producers: They must sign written contracts with a price covering their production costs and gain stronger protection against abusive practices.
• Processors, wholesalers and distributors buying food products: They cannot cancel orders of perishables at the last minute, impose payments unrelated to the sale, or return products without paying, and face fines of up to one million euros.
• Food Information and Control Agency (Agencia de Información y Control Alimentarios): It acts as the national enforcement authority and contact point with the European Commission, monitors compliance and manages the contract register.
• Autonomous communities (comunidades autónomas): They must designate their own control authorities and impose sanctions in the cases assigned to them.
• Spanish Agency for Food Safety and Nutrition (Agencia Española de Seguridad Alimentaria y Nutrición): Its legal regime is adapted to Law 40/2015, moving part of its regulation to its Statute.

Words worth knowing

Cadena alimentaria (food supply chain)

All the operators involved from production to distribution of agricultural and food products.

Prácticas comerciales desleales (unfair trading practices)

Abusive conduct by one company toward another in their commercial dealings, such as imposing unfair payments or conditions.

Productor primario (primary producer)

A person or company engaged in farming, livestock, forestry or fishing.

Entidad asociativa (associative entity)

A cooperative or similar organization to which members deliver their production.

Transposición (transposition)

Adapting a European Union rule into Spanish law.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries