The 7th Intersessional Meeting of the UNIDROIT Working Group on Collaborative Legal Structures for Agricultural Enterprises (CLSAE) took place from 9–11 April 2025 in Rome, Italy. The project is a joint initiative from the International Institute for the Unification of Private Law (UNIDROIT), a multilateral law-making body established in 1926; the Food and Agriculture Organization of the United Nations (FAO); and the International Fund for Agricultural Development (IFAD).
CLSAE builds on UNIDROIT’s previous legal instruments—namely, the Legal Guide on Contract Farming and the Legal Guide on Agricultural Land Investment Contracts – but is the first to include a dedicated chapter and focus area on cooperative enterprises.
The upcoming Legal Guide, expected in 2026, will cover a broad spectrum of collaborative models, including cooperatives, companies, and multiparty contracts. Among the Working Group members are Prof. Hagen Henry, Chair of the ICA Cooperative Law Committee, and Prof. Cynthia Giagnocavo, Chair of the ICA Cooperative Research Committee. Both play a leading role in shaping the Legal Guide’s analysis of the legal characteristics and broader ecosystem of agricultural cooperatives. Santosh Kumar, ICA’s Director of Legislation, participated in this latest meeting and contributed to the process, exploring ground for the ICA in the implementation of the Legal Guide upon release.
The CLSAE project is grounded in the understanding that collaboration is essential to help smallholders and agri-MSMEs overcome the challenges posed by global value chains. It aims to:
- Enhance access to viable markets, resources, and inclusive financial services;
- Harness innovation opportunities while addressing the risks associated with digitalisation and digital platforms;
- Tackle power imbalances and strengthen participation in decision-making; and
- Propose remedies for unfair commercial practices.
To support these goals, the project examines various collaborative legal structures, analysing their purposes, formation and entry requirements, governance systems, liability rules, enforcement mechanisms, and provisions for exit and dissolution. It distinguishes between horizontal and vertical forms of collaboration to illustrate the diverse legal frameworks that can be used along the agricultural value chain.
Photo: members of the UNIDROIT CLASE WG during the 7th intersessional meeting between 9-11 April in Rome, Italy
