Farmers Weekly Business Clinic: Must buyer take whole crop under contract?

Having diversified into growing grapes, a farmer has signed a five-year exclusive supply contract with a local winemaker under which he will be paid a set price for all of his grapes.

The exceptional 2018 vintage produced yields and grape quality which were considerably higher than anticipated. As a result, the winemaker has been put under severe financial pressure. He has now asked for changes to the contract to give a reduction in the prices and a cap to be placed on how much he has to buy.

While keen to maintain his working relationship with the winemaker, the farmer feels the demands being made are unfair and poorly timed.

In this month’s Business Clinic, Thrings solicitor Ken Kaar takes a look at supply and purchase agreements, and offers advice on how the farmer can maintain good relations with his client while protecting his own commercial interests.

Click here to read the full article in Farmers Weekly.