Key Highlights:
- Proposed Legal Amendments: The European Commission has introduced changes to the Regulation on the common market organisation of agricultural products (CMO) and a new Regulation to enhance enforcement against unfair trading practices (UTPs) in cross-border agricultural trade.
- Focus Areas: The proposals aim to improve contracts, boost producer organisations, expand sustainability initiatives, and enhance cross-border enforcement cooperation.
- CAP Simplification: Progress on reducing administrative burdens under the Common Agricultural Policy (CAP) is also highlighted.
Strengthening Farmers’ Position
The proposed amendments seek to address challenges faced by farmers by:
- Enhancing Contracts: Mandating written contracts and ensuring they account for market fluctuations and cost changes.
- Mandatory Mediation Mechanisms: Introducing mediation processes between farmers and buyers to resolve disputes.
- Boosting Producer Organisations: Allowing financial support under CAP and simplifying legal recognition to improve bargaining power.
- Crisis Management: Enabling financial backing for private initiatives addressing crises.
- Defining Terms: Clarifying terms like “fair” and “short supply chains” in agricultural marketing.
- Expanding Sustainability Efforts: Supporting initiatives promoting generational renewal, small farm viability, and improved working conditions.
Tackling Unfair Trading Practices
A new framework is proposed to strengthen cross-border enforcement of UTPs under Directive (EU) 2019/633. Key elements include:
- Improved Cooperation: Establishing a mutual assistance mechanism among national enforcement authorities.
- Coordinated Action: Facilitating investigations into cross-border UTPs to protect farmers and smaller suppliers.
- Exchange of Information: Enhancing the sharing of data, penalties, and enforcement actions across Member States.
Christophe Hansen, EU Commissioner for Agriculture and Food, stated: “Today’s proposals deliver on my commitment to strengthen the position of farmers. These amendments will ensure fair treatment for farmers and smaller agri-food actors across the EU.”
Broader Measures to Support Farmers
Additional measures by the European Commission include:
- CAP Simplification: Targeted measures have reduced administrative burdens, saving time and offering greater flexibility for farmers.
- De Minimis Regulation: Revised to allow increased direct support to farmers without requiring state aid approval.
- EU Agri-Food Chain Observatory (AFCO): Established to improve trust and cooperation in the supply chain.
The Commission is also reviewing responses to its survey evaluating measures to promote fairness and trust in the food supply chain, with results expected by December 2024.
Statements from Leadership
Ursula von der Leyen, President of the European Commission: “Fairness for farmers is a key priority. Decent income, fair prices, and better protections will strengthen their position in the food chain.”
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