Agricultural producers are the weakest link of this chain and often fall victim to unfair commercial practices exerted by entities with a greater bargaining power and economic potential. The purpose of this Act is to strengthen the position of agricultural producers in the food chain and to clarify the existing provisions. The proposed solutions will enable the strengthening of the market position of farmers by establishing a reference price covering the production costs. The proposed legislative solutions will contribute to the stabilisation of agricultural markets, including fruit market, and will facilitate the planning of agricultural production further in advance.

The Draft further clarifies the provisions concerning the obligation to conclude written contracts for the supply of agricultural products by extending the requirement for concluding contracts to intermediaries.