In a bid to address the concerns raised by farmers regarding fair compensation and their precarious position within the food supply chain, the European Commission has put forth a comprehensive set of proposals. Central to these proposals is the acknowledgment of the imbalance of power within the industry, where a handful of large corporations wield significant influence while farmers, especially smaller ones, find themselves in a vulnerable position.To tackle this issue, the Commission’s plan involves several key initiatives. Firstly, there will be the establishment of an observatory tasked with monitoring trading practices, margins, and costs within the agri-food supply chain. This move aims to bring about greater transparency and accountability.
Furthermore, the Commission aims to introduce new regulations to ensure the cross-border enforcement of existing directives aimed at curbing unfair trading practices. This measure is particularly targeted at multinational food and retail companies, aiming to prevent them from exploiting differences in national legislation to the detriment of farmers. In addition to these immediate actions, the Commission plans to conduct a thorough assessment of the implementation of existing directives and evaluate the need for legislative changes by 2025. Moreover, there are considerations to amend the EU’s Common Market Organisation Regulation to bolster contracts between farmers and buyers, as well as to promote voluntary fair-trade schemes.
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