NFU warns potato growers of unworkable EU contract rules

The NFU has warned members to be wary of EU contract rules after Welsh potato growers John and Andrew Morgan lost over £1 million due to diseased seed potatoes. A four-year legal battle to recover the losses is still ongoing.

The Morgans, whose business Morgrow accounted for four per cent of the total seed potatoes grown in England and Wales, filed for damages including consequential losses of £1.2 million when an outbreak of potato ring rot was found on their farm in Brecon in 2003.

John Morgan said: "To date professional fees are in the region of £300,000. Luckily for us we have received significant financial support from the NFU Legal assistance scheme."

Arbitrators ruled in favour of the Dutch supplier of the diseased stock on two occasions because Mr Morgan had not abided by practically unworkable EU contract rules – known as RUCIP* - laid out in an onerous 74-page document. Specifically, he had not lodged a complaint in five hours and without having moved the potatoes from the facility where they were unloaded, even though the disease was latent and so wouldn't be visible.

NFU senior legal adviser James Potter said: "John had obviously unloaded, planted and harvested the crop before the disease was discovered but these rules meant he had no recourse on the sellers, which seems ridiculous in the case of a latent quarantine disease that did not become evident until after planting.

"This situation epitomises the RUCIP Rules' onerous clauses and complex procedures, which protect the interests of wholesale potato merchants. All potato growers should be aware of the risks involved before agreeing to any transactions under these terms."

The Morgans have appealed to the Dutch District Court to have both awards set aside in the ongoing legal battle which may take up to five years.