The control organisation which belongs to the Ministry of Agriculture, suspects possible irregularities both in the agreement of purchase prices and in the demands for the use of certain containers to ensure the goods can be sold through certain channels.
Agri-food Chain Law
According to AICA director José Miguel Herrero, the investigations have evaluated the compliance with the Agri-Food Chain Law of the commercial relations between cooperatives and alhóndigas and their customers.
In more than 50% of the investigations carried out, a breach has been identified in the payment terms, which must not exceed thirty days, which has entailed the filing of disciplinary proceedings against the companies responsible.
Herrero recalled that it is compulsory for the contracts of the transactions to be signed in writing. He has acknowledged that while this is usually done, certain irregularities have been detected regarding the fixing of prices in contracts.
"The Agri-Food Chain Law establishes that there must be a fixed or reference price in the transaction and prohibits sales without contracts, as explained by the director of the AICA, who estimates that "around 30% of the operations investigated have not taken these criteria into account."