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UOKiK decided to initiate proceedings against Südzucker Polska under the law on the prevalence of contracts
.Südzucker Polska is one of the four sugar producers present in Poland. The company operates in the south of the country, where other sugar companies do not have their factories.
According to the statement, the plaintiffs were receiving complaints from farmers who were paying attention to irregularities in the contracts used by the company.
UOKiK Eight randomly selected growers who, in recent years, have delivered beetroots for more than 50,000 PLN
What is important is that the situation of other farmers is the same as that of the eight because the contracts are based on the model
– Our contract analysis shows that an entrepreneur can use his trading advantage to sugar beet suppliers. Doubts by the authorities have raised unclear pricing rules and lengthy payment terms – says President Marek Niechcia³
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The producers who bought their products knew only part of the rate, the so-called guaranteed price, the rest being determined on imprecise terms and based mainly on the price obtained in the future by the Sugar sale
Growers did not have the opportunity to know the final price. They could not verify the reliability of the calculations made by Südzucker Polska
UOKiK also took the terms of payment under the microscope. According to regulations, the company has 60 days to settle with producers, while according to the office, the sugar producer has two deadlines. Those who delivered the beets before November 30th received money (guaranteed amount) by December 10th. The farmers who delivered the crop in September waited almost twice as much money as the law.
Farmers who delivered vegetables from December 1 were even worse off. The contract provides that they will receive a payment at the end of the sugar campaign, that is to say until the end of the treatment of sugar beet. There is no specific date given, which may mean that the supplier does not even know the approximate date on which he will receive the money.
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If the Office of Competition and Consumer Protection proves that sweets use the contractual advantage, it may impose a penalty up to 3% . business figure achieved the previous year. The procedure may also end without financial penalties. The Board may waive the penalty if the contractor voluntarily undertakes to put an end to illegal practices or to remedy their consequences.
Soft fruit to inspect
The OPCC also verifies fruit manufacturers, .in. strawberries, raspberries, cherries or currants. In recent weeks, advertising has been about the low prices of these products, which some producers have not started harvesting at all.
From June 2018, employees verify the fruit supply contracts as well as the terms of payment and the list of suppliers. . Explanations were also given by the heads of the companies inspected and the persons in charge of the implementation of the cooperation with the farmers.
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– At this moment we analyze the material collected during the inspection. Regardless of the results, we can say today that one of the problems is the weak bargaining position of farmers who grow fruit. Therefore, it is necessary that they join the larger groups of producers. Through this they will be able to deal more effectively with larger customers, including on more favorable prices – says UOKiK President, Marek Niechcia³
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