The buyer is obliged to take over and pay for the contracted quality of wheat in accordance with the contract

The Ministry of Agriculture announced on Wednesday an explanation regarding the purchase of this year’s wheat crop, stating among other things that the buyer must clearly specify in the contract which quality they accept for purchase and how the quality parameters reflect on the price, i.e., how the price is calculated based on individual quality parameters, what the basis is, and how corrections are made.

The quality parameters for which wheat is sold/bought on the Croatian market are subject to an agreement concluded by a contract between the producer and the buyer, the Ministry states.

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They also note that the buyer, in accordance with the Law on the Prohibition of Unfair Trading Practices in the Food Supply Chain, is obliged to conclude a written contract with the producer. The contract must contain all provisions essential for their business relationship.

Thus, the contract must contain provisions on the price of the product and/or the method of determining or calculating the price, the quality and type of agricultural or food product delivered to the buyer and/or processor, the terms and deadlines for payment of the delivered agricultural or food product. The payment deadline cannot exceed 60 days from the date of receipt of the delivered product, nor can it exceed 30 days from the date of receipt of the fresh product that is the subject of delivery.

The contract must also contain provisions on the conditions and deadlines for the delivery of agricultural or food products that are the subject of the contract, the place of delivery of the agricultural or food product, and the duration of the contract.

“Exceptionally, a written contract is not required if the primary producer accepts the buyer’s order based on publicly announced buyer conditions, which are binding and attached to the purchase block, and contain all provisions that a written contract contains,” the Ministry of Agriculture emphasizes.

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They also note that the buyer must clearly specify in the contract which quality they accept for purchase and how the quality parameters reflect on the price, i.e., how the price is calculated based on individual quality parameters, what the basis is, and how corrections are made. This ensures the transparency of the purchase system for both producers and buyers, the Ministry emphasizes.

For the purchase to be in accordance with the law, “the buyer must specify in the contract what quality of wheat they require, i.e., they must specify all the parameters that such wheat must meet so that there is no misunderstanding upon taking over the wheat regarding whether the buyer is obliged to take over the delivered wheat or not.”

The buyer is obliged to take over and pay for the wheat that meets the contracted quality in accordance with the contract, concludes the Ministry of Agriculture’s statement.