📢 [LEGAL FRAMEWORK FOR THE SALE AND DISTRIBUTION OF FOOD PRODUCTS: THE RESPECT OF A MINIMUM COST OF PRODUCTION UNDER SPANISH LAW ]
💰 Law 12/2013 for the Improvement of the Food Chain (LAFCA) has introduced in 2020, a requirement that primary producers receive a minimum price that covers their actual production costs.
🌱This amendment was further extended in 2021, now including a more extensive definition of production costs. These costs encompass a wide range of expenses, including seeds, chemicals, interest on loans and financial products, labor, and various other costs associated with agricultural activity. However the current definition of production costs is considered inadequate. It does not clearly specify which types of costs are to be considered, nor how they are to be calculated, which can lead to uncertainty. Nevertheless, the definition of this minimum threshold is left in the hands of the producer himself, depending on the products.
💡It is however interesting to see that such a regulation exists in Spain at a time when France is talking about the introduction of minimum prices that could be imposed by the French parliament. An exchange with the Spanish authorities or with experts such as Callol, Coca & Asociados law firm, founded by Pedro Callol, would probably be particularly useful.