Chapter 447

[ CAP. 447. PRODUCER ORGANISATIONS 1 CHAPTER 447 PRODUCER ORGANISATIONS ACT* To provide for the creation of Producer Organisations in the Agricultural and Fisheries sectors. 6th January, 2003 ACT IX of 2002 , as amended by Legal Notices 426 of 2007, 346 of 2008 and 182 of 2012 . PART I Preliminary 1. Act. 2. The short title of this Act is the Producer Organisations Short title. In this Act, unless the context otherwise requires - Interpretation. Amended by: L.N. 182 of 2012. ''action plan'' means an approved plan by a producer organisation to meet the criteria for recognition in accordance with regulations made under article 19; ''Director'' means the Director of Agriculture or the Director of Fisheries, as the case may require, and includes, to the extent of the authority given, any officer authorised by the Director, in writing, to act in that behalf for any of the purposes of this Act; ''interbranch association'' means an association made up of representatives of economic activities linked to the production, the trading in and the processing of the product, and may include representatives of any one or more of such economic activities; ''marketed production'' means the products of members of the producer organisation marketed through the organisation; ''market withdrawal'' means the withdrawal from the market of products covered by an operational programme; and ''withdrawal from the market'' shall be construed accordingly; ''measure'' means a group of related actions which together meet one or more of the objectives under the operational programme; ''member'' means a person who, together with other persons, forms, creates or joins a producer organisation; ''Minister'' means the Minister responsible for agriculture and fisheries; ''operational fund'' means the producer organisation account, based on producer contributions and Government funding, which is used solely to finance operational programmes, action plans and market withdrawals; ''operational programme'' means an approved plan by a producer organisation to improve performance of the organisation over time particularly in terms of marketing, product quality and *This Act has been repealed by Act XXXIV of 2023. 2 [ CAP. 447. PRODUCER ORGANISATIONS environmental conditions; ''producer'' means any person who is involved in the trade of tilling land or tending live stock, or engaged in the fishing industry; ''producer organisation'' means an organisation, recognised by the Direct or, being a voluntary legally constituted body of producers of particular products or of persons engaged in the agricultural and, or fishing industries, acting together to produce, harvest, store, package and, or market their products; ''producer organisation non-member'' means producers who produce products covered by regulations made under article 19, but who are not members of any producer organisation; ''product'' means the type of agricultural produce and, or fishery products, covered by regulations made under article 19; and ''production'' shall be construed accordingly; Cap. 490. "Tribunal" means the Administrative Review Tribunal established by article 5 of the Administrative Justice Act. PART II Constitution of Producer Organisations Establishment of producer organisations. 3. (1) Producer organisations which are recognized by the Director in accordance with the provisions of regulations made under article 19 shall have a distinct legal personality from that of their members. (2) Producers, whose products fall under any of the categories as may, from time to time, be prescribed by the Minister in regulations made under article 19, may form a producer organisation. Functions and aims of producer organisations. 4. The functions and aims of a producer organisation shall be: (a) to take such measures as will ensure that its members’ production will be as market-orientated as possible; (b) to promote the placing on the market of the products produced by its members; and (c) to promote production techniques which environmentally sound and along rational lines. are Recognition of producer organisations. 5. A producer organisation shall only be recognised for the purposes of this Act if, after it applies for recognition to the Director in accordance with the provisions of this Act, it satisfies the requirements laid down in regulations made under article 19. Membership of producer organisations. 6. (1) Members of producer organisations shall abide by the rules of the organisation of which they are members, and shall (a) apply the rules adopted by the producer organisation relating to production reporting, the production itself, marketing and protection of the environment; (b) belong to only one of the producer organisations in respect of each product, but may belong to various organisations as long as the relative organisations do not market similar products; PRODUCER ORGANISATIONS [ CAP. 447. 3 (c) subject to the provisions of subarticle (2), market the entire production of their produce through the producer organisation; and (d) pay such financial contributions provided for in the rules of the producer organisation for the establishment and replenishment of the operational fund provided for in article 9. (2) Where the producer organisation so authorizes, and in compliance with the terms and conditions it lays down, the members may (a) sell part of their production directly to consumers; (b) market, through any other producer organisation or any other marketing channel, designated by their producer organisation, quantities of products which are marginal in relation to the volumes marketed by their organisation; (c) market, through another producer organisation or any other marketing channel, designated by their producer organisation, products which, because of their characteristics, are not normally covered by the commercial activities of the organisation concerned; and (d) in accordance with the procedure laid down by the Director by way of derogation, be authorised only for limited periods and on a gradually reducing scale, and with respect to particular products, to conclude direct contracts with processing undertakings. 7. (1) It shall be the duty of the Director to - (a) decide whether to grant recognition to a producer organisation within three months of the lodging of an application together with all supporting documents that may be required; (b) regularly carry out checks to ascertain that producer organisations comply with the requirements for recognition, and are functioning in accordance with the approved operational programme, carry out a proper audit of operational funds, and, in the event of non-compliance, to impose the prescribed penalties and, or, to withdraw recognition; (c) notify the Minister, within two months of every decision to grant, refuse or withdraw recognition. (2) Without prejudice to any other action competent to the Director under this or any other law, failure by an organisation to function in accordance with an approved operational programme or to submit its books for inspection and verification and to allow an audit thereof provided for in this article, shall render the officers of the organisation liable to such administrative penalties and fines as may be prescribed. Duties of Director. 4 [ CAP. 447. PRODUCER ORGANISATIONS PART III Operation of Producer Organisations Operation of producer organisations. 8. (1) Producer organisations shall be governed by such regulations as may be prescribed under article 19 and shall be run in accordance with the operational programme referred to in subarticle (2). (2) Producer organisations shall submit, for approval by the Director, operational programmes whenever required to do so by the Director, and no changes to such operational programmes shall become effective without the prior approval, in writing, of the Director. (3) The Director shall signify his consent or otherwise to a change in an operational programme within three months of the submission, by the producer organisation concerned, of the request for such change. Operational fund. 9. (1) Producer organisations setting up an operational fund may apply to the Director, in accordance with the provisions of this Act, for financial assistance. (2) The operational fund referred to in subarticle (1) may be applied, by producer organisations, for the financing of market withdrawals only where the operational programme has been approved by the Director in accordance with article 8(2). (3) The Minister may make regulations establishing the conditions under which products covered by an operational programme may be withdrawn from the market, and the manner in which products so withdrawn may be disposed of. Promotion and competitiveness of products. 10. The Director shall take such measures as he may deem appropriate to promote and improve the competitiveness of products listed in regulations made under this Act and intended to be placed on the market by producer organisations. PART IV Interbranch Associations Recognition of interbranch associations. 11. (1) Interbranch associations which are recognised by the Director in accordance with the provisions of regulations made under article 19 shall have a distinct legal personality from that of their members. (2) The Director shall, in accordance with regulations made under article 19 (a) decide whether to grant recognition to an interbranch association, within three months of the lodging of an application together with all relevant supporting documents, as specified in the said regulations; (b) carry out checks at regular intervals to ensure that interbranch associations meet the terms and conditions for recognition; PRODUCER ORGANISATIONS [ CAP. 447. 5 (c) withdraw recognition if (i) the terms and conditions for recognition specified in regulations referred to in this article are no longer met; or (ii) the interbranch association contravenes or fails to comply with any other regulation prescribed under this Act; (d) notify the Minister, within two months, of any decision to grant, refuse or withdraw recognition. (3) Without prejudice to any other action competent to the Director under this or any other law, failure by an interbranch association to function in accordance with the provisions of this Act or of any regulations made thereunder, shall render the officers of the interbranch association liable to such administrative penalties and fines as may be prescribed. PART V General 12. (1) The Director shall, every year, forward to the Minister an annual report on the activities of producer organisations and interbranch associations. Annual report. (2) The Director shall, once a year, publish in the Gazette a list of registered producer organisations and interbranch associations; the Director shall also publish in the Gazette any withdrawals of recognition of producer organisations and interbranch associations, as well as lists of products, if any, withdrawn from the market at any particular time or times during th e th ree m onth period immediately preceding such publication. 13. (1) Producer organisations may allow producers, who are not members of producer organisations, if the latter so request, to withdraw products from the market under such conditions as may be prescribed: Extension of benefits. Provided that the withdrawal compensation, if any, which may be payable to such producers, in the form of financial assistance payable by the Director, shall be reduced by a maximum of ten per centum of the compensation payable to members of the producer organisation, and provided also that the amount paid shall take account of the overall withdrawal costs borne by such producers: Provided further that compensation shall not be granted where the amount of products withdrawn from the market is higher than the percentage, as the Director may from time to time establish, of the total amount of the product which would have otherwise been marketed by the producer. (2) Producer organisations shall keep the Director informed of any measures taken in accordance with the provisions of subarticle (1). 14. (1) The Director shall authorise the payment, out of the operational fund, of the withdrawal compensation, which shall be Payment of compensation. 6 [ CAP. 447. PRODUCER ORGANISATIONS fixed in accordance with such regulations as may be prescribed u n d e r a r t i c l e 1 9 , t o p r o d u c e r o rg a n i s a t i o n s o r i n t e r b r a n c h associations which have withdrawn products from the market in accordance with the provisions of this Act or any regulations made thereunder. (2) The Director may, in such circumstances as he may deem appropriate, authorise the payment of the withdrawal compensation even where the amount of products withdrawn from the market exceeds the limit, which may have been set by the Director at the beginning of the year, to prevent imbalances in withdrawals of products from the market for the payment of withdrawal compensation. (3) Where producer organisations and interbranch associations are unable to direct withdrawn products to one of the destinations referred to in article 15, the withdrawal compensation shall be granted only if the products are disposed of in accordance with such instructions as the Director may give. Disposal of products. 15. Products which are withdrawn form the market in accordance with the provisions of this Act or of regulations made thereunder shall be disposed of in any of the following methods, as shall be determined by the Director: (a) free distribution to charitable organisations; (b) free distribution to penal institutions, hospitals and old people’s homes; (c) use for non-food purposes; or (d) use in animal feeds, either in their fresh state or after processing by the feeding stuffs industry. Spot checks. 16. Without prejudice to any other action which the Director may take under any of the provisions of this Act, the Director may c a r ry o u t spo t c h e c k s to e nsu re the proper a pplication a nd implementation of the provisions of this Act, or of any regulations made thereunder, by the members of the producer organisations and of the interbranch associations. Inspectors. 17. (1) The Director shall designate such number of his officers as inspectors for each sector, as he may deem fit, who shall be persons with suitable qualifications, technical knowledge and experience to take part in such inspections, as may be required in order to ensure that producer organisations and interbranch associations are acting in conformity with the provisions of this Act, or any regulations made thereunder. (2) The inspectors shall, in the course of such inspections, follow such instructions as may be given by the Director under this Act, as regards the manner, duration and method of the inspections carried out, and shall be bound by the rules of professional secrecy. Administrative Review Tribunal. Substituted by: L.N. 182 of 2012. 18. (1) The Tribunal shall have jurisdiction to hear and determine all appeals made by a person aggrieved by any decision of the Director, relating to the grant, refusal or withdrawal of recognition of a producer organisation or of an interbranch association, or the refusal by the Director of the payment of compensation withdrawal. PRODUCER ORGANISATIONS [ CAP. 447. 7 (2) The Tribunal may require any department or agency of the Government to provide the Tribunal with such information or a d v i c e a s t h e Tr i b u n a l m a y d e e m n e c e s s a r y f o r t h e p r o p e r execution of its functions. (3) An appeal from a decision of the Director as aforesaid shall be made by application and shall be filed with the Secretary of the Tribunal within twenty days from the date on which the said decision has been notified. (4) The provisions of the Administrative Justice Act, in so far as they apply to the Administrative Review Tribunal, shall apply to any proceedings before the said Tribunal and the words "public administration" in the said enactment shall be construed as a reference to the Director. Cap. 490. (5) The provisions of article 25 of the Administrative Justice Act shall apply to any appeals pending before the Producer Organisations Appeals Board constituted under article 18, as the said article stood prior to the coming into force of this article, and any such appeals shall be assigned to the Administrative Review Tribunal in terms of the aforesaid article 25 with effect from 1st July, 2012. Cap. 490. 18A. Deleted by Legal Notice 182 of 2012. 19. (1) The Minister may make regulations for the better carrying out of the provisions of this Act. (2) Without prejudice to the generality of subarticle (1), the regulations may make provision for: (a) the criteria to be used for the recognition of producer organisations and interbranch associations, including the minimum number of members and the minimum volume of marketable production required for recognition; (b) the categories of products which qualify for the formation and the recognition of producer organisations and interbranch associations; and the categories of related trades which qualify for the formation and the recognition of interbranch associations; (c) the conditions under which a producer organisation or an interbranch association shall be deemed to be representative of a sector or of a specific area; (d) the rules governing the running and operation of producer organisations and interbranch associations; (e) the information which producer organisations are expected to collect and forward upon demand and the provision for administrative penalties and fines, not exceeding two thousand and three hundred and twenty-nine euro and thirty-seven cents (2,329.37), in Observance of the principles of good administrative behaviour. Added by: L.N. 346 of 2008. Regulations. Amended by: L.N. 426 of 2007. 8 [ CAP. 447. PRODUCER ORGANISATIONS cases of unjustified delays or systematic negligence in the proper performance of these tasks; (f) the contents of operational programmes, and the rules which govern the allocation of financial aid to operational funds; (g) the proportion of the operational fund which may be used to finance market withdrawals; (h) the procedure for the establishment, administration and inspections of producer organisations; (i) the measures which may be taken by the Director to improve the competitiveness of products and their promotion; (j) the determination of the withdrawal compensation payable for a particular product; and (k) the administrative penalties and fines, not exceeding two thousand and three hundred and twenty-nine euro and thirty-seven cents (2,329.37), which may be imposed on producer organisations and, or interbranch associations which do not fulfil their undertakings or act in contravention of the provisions of this Act.