As announced by the Ministry of Agriculture, the Law on the Prohibition of Unfair Trading Practices in the Dairy Sector aims to strengthen the negotiating power of milk sellers, ensure greater transparency and legal clarity in milk purchase and sale relations.
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The law stipulates that parties will be able to choose between indefinite or fixed-term contracts. Indefinite contracts will have to apply a uniform price for milk produced under the same production system and delivered in the same way, and the sum of additives and premiums will not be able to exceed 20 percent of the milk price.
In addition, changes in prices or additives are possible no more than once a month. It is also stipulated that the price of milk delivered directly to a milk processing plant cannot be lower than the price of milk collected directly from farm refrigerators.
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Meanwhile, fixed-term contracts must have a clear duration, a specific price amount or a clear price recalculation formula, and the amounts of additives and premiums are not limited.
Milk buyers will not be able to unilaterally terminate the contract or change its terms, or apply unforeseen deductions.
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The new regulation will come into force from March next year.
