The new agri-food watchdog will have the power to fine offenders €10 million in cases of unfair trading practices

The regulator, long demanded by farmers, will have sweeping powers to investigate, among other things, late payments to farmers and other producers, abuses of trade secrets, commercial retaliation and unilateral contract changes.

In addition to enforcing existing laws and trade practices, the primary objective of the regulator established under the Agricultural and Food Supply Chain Act is to promote fairness and transparency in the agricultural and food supply chain.

Mr. McConalogue’s bill incorporates a number of recommendations from Oireachtas Agricultur The committee’s pre-legislative review of the document, including changing the proposed name of the regulator from what was originally to be the Office for Fairness and Transparency in the Farm and Food Supply Chain.

Under the new law, the regulator will have the power to investigate suspected violations, promote alternative dispute resolution processes between suppliers and buyers, initiate proceedings for violations of the law, and refer cases to the Director of Public Prosecutions if it believes that a criminal act has been committed.

A source said fines of up to 10 million euros could be imposed for breaking the law – which was also recommended by the Oireachtas committee.

Farmers have long called for the creation of a food ombudsman-style office after being highly critical of food processors, claiming they have been pricing unfairly in recent years, particularly in the beef sector.

Recently, the Irish Farmers’ Union staged protests at retailers in Cavan, where egg producers were demanding that price increases be passed on to them.

Plans are also understood to be well advanced to hire a new chief executive officer for the regulator, who will earn a salary of between €98,593 and €121,586.

The office will receive a budget of 4 million euros for its establishment and the revised legislation, which will be presented to ministers this week, sees the number of board members differ from that contained in the general scheme of the bill, increasing from six to eight , including the chair based on a recommendation from the pre-legislative review report.

The regulator will also publish price and market analysis within the agricultural produce supply chain and publish reports on emergency issues either on its own initiative or at the request of the relevant minister.

Ministers are told this week that having this information available will help create a “leveler playing field” for smaller producers, which under the EU’s Common Agricultural Policy will contribute to a decent standard of living for the farming community.

Mr McConalogue has said setting up the regulator is a priority for him as Minister.

“I’m confident it will act as an advocate and voice for farmers, growers and other food businesses throughout the agri-food supply chain,” h e said recently.

The new regulator falls within the remit of the Minister of Agriculture in his role of regulating agriculture, fisheries and the food industry through national and EU law and, in relation to government bodies, regulating and promoting the industry. It will function in a similar way to committees such as Bord Bia.