The economic conditions of marketing industrial tomatoes in Northern Italy are described in a framework contract, in which the shared cultivation rules, the basic price acknowledged to farmers and the qualitative evaluation parameters of the raw material are specified.
These rules are discussed and agreed during the negotiation tables between the main tomato POs and the processing industries in the OI Pomodoro (Inter-branch Organisation of the Industrial Tomato of Northern Italy) which acts as a negotiation arbiter.
The product enhancement parameters are defined: the basic price, the qualitative elements which increase or decrease this price and the premium quality product.
After with each of our clients we sign a specific contract which also reports these shared rules.
The internal regulation of the PO, among other things, governs how its members’ product must be delivered to the processing industries.