The implementation of regulations against unfair trading practices (UTPs) has moved a step closer following agreement between the European Council, Commission and Parliament.

The regulations are aimed at providing more protection for small farmers and medium-sized producers when dealing with larger processors and retailers.

President of the European Council, Elisabeth Köstinger said: “We want farmers to get a fair price for what they produce and to be acknowledged for the crucial role they play in our society. These new rules give a voice to producers who previously did not have one, and empowers member states to go the extra mile to defend them.”

Unfair practices

Examples of the unfair trading practices that will be banned are late payments for perishable products, last minute order cancellations, unilateral changes to supply agreements, the misuse of confidential information, and threat of retaliation against the supplier.

Member states will also have to designate a public authority to take charge of enforcing the new rules. This authority will be able to initiate investigations both on their own or on the basis of a complaint.

Suppliers will be able to choose whether to lodge a complaint in their own member state or in the member state where the buyer may have engaged in a prohibited trading practice.

The agreement must now be endorsed by member states at a special committee on agriculture before moving to consideration by the Parliament and Council.

Retail regulator

IFA President Joe Healy welcomed the agreement, saying: “Today’s agreement shows there is significant political momentum behind the EU directive to rule out unfair trading practices. What we need to see now is our Government move this forward without delay. This includes the appointment of an independent retail regulator for the food sector.”