Copa-Cogeca, Europe’s largest interest group for farmers and agri-co-ops, has voiced support for proposals made by the European Commission to strengthen farmers’ position in the food supply chain.
In response to farmers’ protests earlier this year, the European Commission has put forward two proposals – one to address unfair trade practices, and the other to improve the common market organisation framework.
The Commission says its proposal on cross-border enforcement against unfair trading practices will “further strengthen the enforcement against unfair trading practices in business-to-business relationships in the agricultural and food supply chain, by supporting transnational enforcement”.
The proposal introduces rules on how this cross-border co-operation would be performed and achieved, and aims to enhance EU-level protection for farmers and small and medium-sized suppliers against unfair trading practices in the agri-food supply chain.
The European Commission has also proposed targeted amendments to the existing legal framework which regulates the common market organisation of agricultural products (CMO). The amendments aim to strengthen farmers’ position through a range of measures including by improving contracts between farmers and buyers and boosting producer organisations’ bargaining power.
Copa-Cogeca described the proposal on unfair trade practices as “a step in the right direction”, but said that to correct and improve the previous directive, it must go further.
“Farmers and co-operatives can no longer bear the burden of selling their produce below the cost of production. The list of unfair trading practices must be updated to reflect the realities of today’s markets,” the organisation said.
It also highlighted a need to address the “fear factor” of reporting unfair trade practices, by enabling anonymous complaints and ensuring effective enforcement mechanisms at both national and cross-border levels.
Particular attention must also be paid to the proposals to improve the CMO regulation, added Copa-Cogeca, especially regarding the role of Producer Organisations (POs).
“POs are instrumental in enhancing farmers’ market position, ensuring better negotiation conditions, and securing fair prices. Strengthening POs and safeguarding the specific relationship between farmers and their co-operatives will be vital in achieving these goals.”
Copa-Cogeca said it will be working with policymakers in the coming months to ensure these proposals are refined to deliver the necessary improvements for European farmers and their co-ops.
The proposals come as new tensions emerge between the agricultural sector on the EU, with fears that the trade deal with the South American Mercosur countries will expose farmers to unfair competition.
