Procam fined over 1 million PLN for unfair agricultural contracts

The President of the Office of Competition and Consumer Protection (UOKiK) has imposed a fine of over one million PLN on the company Procam for unfair contractual practices toward farmers. The company utilized its contractual advantage to require the delivery of entire contracted quantities of crops, such as rapeseed, barley, oats, wheat, and rye, regardless of whether weather conditions allowed for a sufficient harvest.

Investigations revealed that Procam’s contracts did not recognize common weather events like drought, heavy rain, or spring frosts as force majeure, instead only listing events such as war, hurricanes, or strikes. This forced farmers to face high contractual penalties even when crops were destroyed by natural causes. Additionally, the company required farmers to report force majeure events within an unreasonably short two-day window, leaving them insufficient time to manage damages and secure their farms. Procam cooperated with the authorities during the proceedings and voluntarily submitted to the financial penalty.