Bill would ban selling food at a loss and protect farmer prices

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1. The bill responds to farmer protests. Farmers say the current Food Chain Law has failed to ensure that the prices they receive cover their production costs.
2. The bill would ban reselling at a loss in the food chain: anyone who buys an agricultural or food product could not sell it below its cost, including fixed and variable marketing costs. Producers who sell directly to consumers are exempt.
3. The price paid to a primary producer would have to be higher than the producer's total production costs, which are listed: seeds, fertilizers, fuel, machinery, labor and other expenses.
4. A company with an 8% market share would be considered to hold a dominant position in the food chain, allowing sanctions for abusive practices under the Competition Defense Law.
5. Official standards for average production costs would be created, with mandatory statistical data from operators. Until the ministry sets the coefficients, an initial 10% coefficient would apply.
6. The food contract registry would be simplified: the buyer would have three months (or one month for one-off deliveries) to register the contract, instead of the current immediate registration.

Who it affects

• Farmers and livestock breeders: Their prices would have to at least cover production costs, with official cost standards as a reference for negotiating contracts.
• Cooperatives and associative entities: They would gain more negotiating power, and their costs would count when calculating production costs.
• Food industry and retailers: They could not resell products at a loss, and would have to register contracts and provide statistical data.
• Companies with large market shares: From an 8% market share they would be considered dominant and could be sanctioned for abusive practices.

Words worth knowing

Reventa a pérdidas (reselling at a loss)

Selling a product bought from someone else for less than it cost to buy and market it.

Posición dominante (dominant position)

A situation where a company has enough economic power to act almost independently of competitors, customers or consumers.

Precio en origen (farm-gate price)

The money the farmer receives for the product when delivering it, before it reaches industry or retail.

Proposición de ley (bill)

A text proposed by a parliamentary group; it is not a law until approved by the Congress and the Senate.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries