Mandatory Rules In Contracts Of Sale Of Food And Agricultural Products In Italy: An Assessment Of Article 62 Of Law 27/2012
AbstractIn the last years European farmers have been facing two new phenomena: the asymmetric price transmission in agro-food sector and the decrease of agricultural value added. The European Commission denounced low transparency in trade relationships and frequent unfair commercial practices between firms and recognized the imperfect functioning of the agro-food supply chain. Economic theories consider contracts as means coordinating entrepreneurs’ decisions (e.g. times, quantity and quality of products, prices). Nevertheless, in some cases buyers may use them to improve and exercise their market power, for instance imposing vertical restraints. That is a typical situation in the European food supply chain, where highly concentrated sectors use their bargaining power against farmers. During that time antitrust authorities and EU Member States have sought to solve the situation by appropriate competition policy measures. The law No. 27/2012 of 24 March 2012 introduced in Italy new mandatory rules regarding contracts of sale of agriculture and food products, aimed at increasing transparency in trade and shortening terms of payment. Thanks to an holistic multiple-case study accomplished by interviews and direct observations, the article analyzes the effects that new rules caused in the Italian agrofood system.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 140th Seminar, December 13-15, 2013, Perugia, Italy with number 163350.
Date of creation: 2014
Date of revision:
contracts; antitrust; agro-food chain; vertical restraints.; Agribusiness; Q13; Q18; L14;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
This paper has been announced in the following NEP Reports:
- NEP-AGR-2014-02-15 (Agricultural Economics)
- NEP-ALL-2014-02-15 (All new papers)
- NEP-COM-2014-02-15 (Industrial Competition)
- NEP-EUR-2014-02-15 (Microeconomic European Issues)
- NEP-SOG-2014-02-15 (Sociology of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven Y. Wu, 2006. "Contract theory and agricultural policy analysis: a discussion and survey of recent developments ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 490-509, December.
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European Review of Agricultural Economics,
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