Chapter 3: Producer Organisations Section 30: Producer and interbranch organisations etc.: application for recognition
Section 30 sets out the conditions that need to be met for groups of operators to qualify for recognition as one of three types of organisations. Much of the detail of the conditions is to be "specified" pursuant to regulations to be made by the Secretary of State under this section.
	An organisation may apply for recognition as a PO under subsection (1) if it meets the conditions in subsection (2). The detail of these conditions to be specified will ensure that only organisations that meet the objectives of the PO structure will be eligible for recognition. For example, the conditions will ensure that the organisation is representative of the sector (or sectors) in which it operates, that it carries out activities that will improve the market position of its members, and that its members control it in a fair and democratic way. Once a PO is recognised, its members can collaborate in carrying out certain activities in ways that would normally be prohibited by competition law; these exemptions are set out in Schedule 2 by way of amendment to the Competition Act 1998.
	Subsections (3) and (4) set out conditions which need to be met for a group of recognised POs to be eligible for recognition as an Association of Producer Organisations (APO). APOs are vehicles for even greater scale collaboration between producers in the same sector. An organisation may apply for recognition as an Association of Producer Organisations (APO) under subsection (3) if it meets the conditions in subsection (4), namely that all the APO’s members are recognised POs, and that the industry itself drove the formation of the APO. APOs enjoy very similar exemptions from competition law to those that apply to POs.
	An organisation may apply for recognition as an interbranch organisation (IBO) under subsection (5) if it meets the conditions in subsection (6). IBOs are vehicles to enable greater vertical collaboration within an agricultural supply chain. They differ from POs and APOs in that they can include members from different stages of the supply-chain (so long as they include at least one producer member). Their activities are not usually focused on production or marketing, but on wider market issues, including research and development to improve the way that products are placed on the market, or to explore potential export markets. Because of the potentially far-reaching nature of an IBO’s activities, the agreements between its members can have particularly distortive effects on competition. The provisions regulating their exemption are therefore stricter than for the other types of organisation.
	Subsection (7) provides that "unlawful activities" in subsections (2)(f) and (6)(f) includes a failure to comply with a duty, as well as breaching a prohibition.
	Subsection (8) defines what it means for businesses within an IBO to meet the condition at subsection (6)(a)(ii), which requires the business to be carrying out activities linked to any one or more agricultural sectors.
	Subsection (9) allows the Secretary of State to introduce further conditions, beyond those set out in subsections (2), (4) and (6), that prospective organisations would need to meet in order to qualify for recognition.
	Subsection (10) requires the Secretary of State to specify in regulations the period within which an application for recognition under subsections (1), (3) or (5) must be determined.
	Subsection (11) requires the Secretary of State to notify both the applicant and the Competition and Markets Authority when an application decision has been made. If an application is granted, this must be published online (on GOV.UK, for example).
	Subsection (12) allows the Secretary of State to introduce further provision, by regulations, about the application process, which may include supporting evidence to be submitted, factors the Secretary of State will take into account when deciding an application, amending time periods or deadlines, application fees or provision about reviews and appeals.
	Subsection (13) contains definitions.
	Subsection (14) allows the Secretary of State to amend, by regulations, the list or descriptions of agricultural sectors listed under Schedule 1.