With 38 votes in favour, four votes against and two abstentions, the agriculture committee of the European Parliament has approved draft regulations to help improve the farmers' position in the food supply chain. The new rules aim to protect food producers against unfair trade practices (UTP) imposed by big players, put a stop to late payments and short notice cancellation of orders as well as giving food producers the right to request a written supply contract.
“In this battle of David versus Goliath, we are arming the weakest in the food supply chain to ensure fairness, healthier food and social rights. Small producers, workers, consumers, all of us, will soon stop suffering the consequences of unfair trade practices imposed by big players in the food supply chain”, said Italian rapporteur Paolo De Castro.
Action
While the UTP legislation was proposed by Commissioner for Agriculture Phil Hogan, it was the parliament that called for action on the issue back in 2016. The Agriculture Committee also demanded an EU law against UTPs in its 2017 position on the so-called Omnibus proposal. MEPs also discussed the matter with several EU agriculture ministers and agreed with them that an EU law was necessary.
European farm organisations have been lobbying MEPs to pass the new rules.
Today MEPs @EP_Agriculture have a unique opportunity to #CutTheUnfair practices from the food chain lowering the pressure for millions of farmers across the #EU. We need a #FairFoodChain that is #FairForAll! You agree? Support us with a photo with #CutTheUnfair ! pic.twitter.com/p1WV7M6vnU
— COPA-COGECA (@COPACOGECA) October 1, 2018
MEPs broadened the scope of the draft law to:
The proposed blacklist of unfair trading practices, as amended by MEPs, includes:
In this battle of David versus Goliath, we are arming the weakest in the food supply chain
MEPs also agreed that the following practices should be outlawed:
Terms of a supply agreement must never result from the supplier’s economic dependence on the buyer, MEPs say. They also insist that unless pre-agreed, the buyer should not sell products below the purchase price and then ask the supplier to bridge the gap.
To make life easier for food producers, MEPs propose to allow them to lodge complaints where they are established, even if UTPs occurred elsewhere in the EU.
Next steps
The draft regulations will now be submitted to the plenary to seek MEPs’ approval for negotiations with EU ministers.