Agriculture Act 2020

2 (1) Paragraph 9 (agricultural products) is amended as follows.

(2) For sub-paragraph (1) substitute—

“(1) The Chapter 1 prohibition does not apply to an agreement to the extent that it is an agreement between the members of—

(a) a recognised producer organisation (“PO”), or

(b) a recognised association of producer organisations (“APO”),

for the PO or APO (as the case may be) to carry out one or more of the activities mentioned in sub-paragraph (1A) on behalf of its members (for all or part of their total production), provided that Conditions A and B are also met.

This exclusion is referred to in this paragraph as the “RPO exclusion”.

(1A) The activities are—

(a) planning production;

(b) optimising production costs;

(c) concentrating supply;

(d) placing products on the market;

(e) negotiating supply contracts.

(1B) Condition A is that—

(a) in the case of a PO, the PO concentrates supply and places the products of its members on the market, whether or not there is a transfer of ownership of agricultural products by the producers to the PO, or

(b) in the case of an APO, the APO concentrates supply and places the products of the members of the POs it represents on the market, whether or not there is a transfer of ownership of agricultural products by the producers to the APO or to any of the POs the APO represents.

(1C) Condition B is that—

(a) in the case of a PO, none of the producers concerned are members of any other PO as regards the products covered by the activities mentioned in sub-paragraph (1A) to which the agreement relates, or

(b) in the case of an APO, none of the producers concerned are members of a PO that is a member of any other APO as regards the products covered by the activities mentioned in sub-paragraph (1A) to which the agreement relates.

(1D) But the Secretary of State may decide that the RPO exclusion applies if Condition B is not met, if—

(a) every producer which is a member of more than one PO holds distinct production units located in different geographical areas, and

(b) the Secretary of State considers that it is appropriate in all the circumstances for the RPO exclusion to apply.

(1E) If the Secretary of State is considering whether to make a decision under sub-paragraph (1D), the Secretary of State may by notice in writing require any party to the agreement in question to give the Secretary of State such information in connection with the agreement as the Secretary of State may require.”

(3) Omit sub-paragraph (2).

(4) In sub-paragraph (3), for “agriculture exclusion” substitute “RPO exclusion”.

(5) For sub-paragraph (9) substitute—

“(9) In this paragraph—

• “agricultural product” means a product that falls within a sector mentioned in Schedule 1 to the Agriculture Act 2020;

• “recognised association of producer organisations” means an association recognised under section 30 of that Act;

• “recognised producer organisation” means a producer organisation recognised under section 30 of that Act.”