Good Practices in the Vertical Food Supply Chain

Estonian Good Practices in the Vertical Food Supply Chain

The Estonian Chamber of Commerce and Industry, the Estonian Traders Association, the Estonian Chamber of Agriculture and Commerce, and the Estonian Food Industry Association have prepared the Estonian Good Practices in the Vertical Food Supply Chain (hereinafter: the Good Practices). The purpose of the Good Practices is to increase honesty, trust and cooperation in the food supply chain and to ensure the efficient functioning of the supply chain.

The Good Practices consist of twelve general principles and examples from Estonian food producers, agricultural entrepreneurs and the trade sector of both good and unfair practices in the vertical food supply chain. The text of the Good Practices can be read in more detail HERE.

The Good Practices apply from 31.05.2018.

JOINING THE GOOD PRACTICES

• Any entrepreneur operating in the vertical food supply chain may join the Good Practices.
• To join the Practices, an application must be completed; it can be found at the end of the page.
• The completed application must be signed by the entrepreneur’s legal or authorised representative and sent to one of the following e-mail addresses: info[at]toiduliit.ee, info[at]epkk.ee, info[at]kaupmeesteliit.ee or koda[at]koda.ee. 

See which entrepreneurs have already joined the Good Practices HERE.

RIGHTS AND OBLIGATIONS OF AN ENTREPRENEUR WHO HAS JOINED THE GOOD PRACTICES

• By joining the Good Practices, the entrepreneur confirms that they follow the general principles of the Good Practices and do not use the unfair practices set out in the Good Practices in the vertical food supply chain.
• The entrepreneur must follow the Good Practices from the moment they have sent the signed application for joining the Good Practices to one of the e-mail addresses listed above. An entrepreneur who has joined the Good Practices must follow the Good Practices when entering into new contracts or amending existing contracts. Existing contracts must be brought into line with the Good Practices no later than within one year after submission of the signed application for joining the Good Practices.
• The entrepreneur must also follow the Good Practices unilaterally. This means that the entrepreneur must follow the Good Practices even if their contractual partner in the vertical food supply chain has not joined the Good Practices.
• The Good Practices must be followed when the contractual partner is an entrepreneur or entrepreneurs entered in the Estonian Commercial Register.
• An entrepreneur who has joined the Good Practices has the right to stop following the Good Practices at any time. To do so, an application signed by the entrepreneur’s legal or authorised representative must be sent to one of the following e-mail addresses: info[at]toiduliit.ee, info[at]epkk.ee, info[at]kaupmeesteliit.ee or koda[at]koda.ee. 

RESOLUTION OF DISPUTES

• Disputes related to the Good Practices are resolved by the contracting parties through conciliation proceedings in accordance with the Rules of Conciliation of the Chamber, if the parties have so agreed.
  • Conciliation proceedings allow the parties to choose a neutral third person who helps the parties resolve the dispute between them.
  • If one or both parties wish to initiate conciliation proceedings, a written notice of initiation of conciliation proceedings must be submitted to the Court of Arbitration of the Estonian Chamber of Commerce and Industry.
  • If the parties reach an agreement or accept the conciliator’s conciliation proposal, its performance is binding on the parties. If no agreement is reached, a party has the right to turn to a court or arbitration court.
• In addition to conciliation proceedings, disputes related to the Good Practices may also be resolved in another manner.

REMOVAL OF AN ENTREPRENEUR FROM THE LIST OF THOSE WHO HAVE JOINED THE GOOD PRACTICES

• If an entrepreneur who has joined the Good Practices repeatedly and to a significant extent fails to follow the Good Practices in the vertical food supply chain, the entrepreneur may be removed from the list of entrepreneurs who have joined the Good Practices by a consensus decision of the four organisations (the Estonian Chamber of Commerce and Industry, the Estonian Traders Association, the Estonian Chamber of Agriculture and Commerce, and the Estonian Food Industry Association).
• The entrepreneur who has violated the Good Practices is informed of the relevant decision.
• After the consensus decision of the four organisations has been made, the entrepreneur who violated the Good Practices is deemed no longer to have joined the Good Practices from the moment the decision is made.

If you would like additional information about the Good Practices or to submit proposals for amending the Good Practices, please contact us:  

Roomet Sõrmus, Chairman of the Board of the Estonian Chamber of Agriculture and Commerce, roomet.sormus[at]epkk.ee

Sirje Potisepp, Head of the Estonian Food Industry Association, sirje[at]toiduliit.ee

Nele Peil, Chief Executive Officer of the Estonian Traders Association, nele.peil[at]kaupmeesteliit.ee

Marko Udras, Head of the Policy Formation and Legal Department of the Estonian Chamber of Commerce and Industry, marko[at]koda.ee