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  • [기타] Act on the Systematization of the Livestock Industry
    • Competent Ministry : Ministry of Agriculture, Food and Rural Affairs
    • Advance Publication of Legislation : 2018-04-25
    • Opinion Submission Deadline : 2018-05-09
Reasons for Proposal

Amid the rapid spread of the systematization of the livestock industry around chickens and ducks, the abuse of power by affiliated companies is becoming rampant toward contracted farms with limited bargaining power, calling for institutional measures to be taken.
In particular, despite the fact that chicken supply prices are determined in the annex to the contract, affiliated companies are justifying their unfair trade practices by enabling them to arbitrarily notify contracted farms of the changes in supply prices of chickens in writing.
Moreover, affiliated companies are handing over their responsibility to disinfect livestock to contracted farms, even though they have specified that the ownership of chickens is vested in them from the date of the transfer security contract after the sale of chickens to contracted farms on credit.
Accordingly, the Amendment aims to clarify feed-stuff and chicken prices, the responsibility of an owner of livestock to disinfect, and to impose an adminstrative fine if they arbitrarily violate the contracted prices, thereby seeking to minimize damage sustained by contracted farms due to the abuse of power by affiliated companies.

Details

A. Include in the contract matters concerning the standards for pricing the materials supplied by affiliated companies for breeding, such as livestock and feed-stuff, owners of livestock being bred, and duties and responsibilities regarding disinfection of livestock (Article 7)
B. When affiliated companies disburse breeding expenses to contracted farms, feed-stuff and livestock shall be traded on the basis of the prices specified on the contracts (Article 8)
C. Prohibit acts by affiliated companies such as neglecting the risks of transmission of diseases without fulfilling their duties to prevent the spread of contagious livestock diseases, and arbitrarily raising the prices of livestock and feed-stuff higher than the contracted prices shall be clarified (Article 9)
D. Exclude those affiliated companies failing to perform their duties to disinfect livestock from the designation of exemplary business operators (Article 10)
E. Allow the Ministry of Agriculture, Food and Rural Affairs to provide support for exemplary business operators and contracted farms belonging to them (Article 12)

Major Provisions

Include in the contract matters concerning standards for pricing the materials supplied by affiliated companies for breeding, such as livestock and feedstuff, owners of livestock being bred, and duties and responsibilities regarding disinfection of livestock (Article 7)
Affiliated companies and contracted farms shall trade feed-stuff and livestock on the basis of the prices specified in the contracts (Article 8)
Affiliated companies shall not neglect the risks of transmission of diseases without discharging their duties to prevent the spread of contagious livestock diseases, or arbitrarily raise the prices of livestock and feed-stuff higher than contracted prices (Article 9)
A person failing to comply with Article 8, paragraph 6 without justifiable cause shall be subject to a fine for negligence (Article 36)

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