The recent consultation on what should be done about unfair trading practices (UTPs) in the EU food industry has delivered a resounding call to the European Commission for legislation.
In simple numbers:
94% of respondents agreed or partially agreed that UTPs have negative effects for farmers.95% of respondents agreed or partially agreed that action should be taken on UTPs.87% of respondents believed this action should be taken by the EU.There was also a strong body of opinion reflected in the consultation that practices such as last-minute cancellation of orders for perishable goods and hello money to get or retain contracts or even get better shelf positioning were ongoing.
The general view of respondents was that this occurred regularly and it was likely to have an impact on farmers.
Enforcement
The majority view in the consultation was that action need to be taken on UTPs and that the EU was best placed to take this action.
The reasons given were that the EU would achieve better enforcement, bring greater legal certainty for businesses and ensure a level playing field in the internal market.
The supply chain has been a focus for Commissioner for Agriculture Phil Hogan since he established a taskforce to investigate it and it reported at the end of 2016.
He again referred to it in his speech at the Irish Farmers Journal Dairy Day a couple of weeks ago and he is determined to take action by way of legislation in 2018.
Strictly speaking, he is pushing the boundaries in this area as it gets into the territory of the European Commissioner for Competition Margrethe Vestager.
Speaking last week in Brussels at a high-level forum on the food supply chain, Hogan again highlighted that “farmers take home an increasingly diminishing share of the added value that is generated in the EU food chain … and that in 2018, the Commission will propose measures that to improve the functioning of the supply chain”.
Consultation
The consultation ran from August until November and received more than 1,500 responses.
Its ambition was to get information on three key issues relating to farmers' position in the supply chain – UTPs, market transparency and producer cooperation.
The European Commission expects to make legislative proposals on tackling UTPs in the first half of 2018.
More scope is given to farmers to form producer groups by way of an omnibus proposal that will take effect from the beginning of 2018.
The responses will feed into an impact assessment that will examine how to improve the supply chain but further work in market transparency is not expected until later next year.
Read more
Hello money and unreasonable demands imposed by supermarkets on farmers
UTP legislation key to protect farmers – and Hogan's legacy
The recent consultation on what should be done about unfair trading practices (UTPs) in the EU food industry has delivered a resounding call to the European Commission for legislation.
In simple numbers:
94% of respondents agreed or partially agreed that UTPs have negative effects for farmers.95% of respondents agreed or partially agreed that action should be taken on UTPs.87% of respondents believed this action should be taken by the EU.There was also a strong body of opinion reflected in the consultation that practices such as last-minute cancellation of orders for perishable goods and hello money to get or retain contracts or even get better shelf positioning were ongoing.
The general view of respondents was that this occurred regularly and it was likely to have an impact on farmers.
Enforcement
The majority view in the consultation was that action need to be taken on UTPs and that the EU was best placed to take this action.
The reasons given were that the EU would achieve better enforcement, bring greater legal certainty for businesses and ensure a level playing field in the internal market.
The supply chain has been a focus for Commissioner for Agriculture Phil Hogan since he established a taskforce to investigate it and it reported at the end of 2016.
He again referred to it in his speech at the Irish Farmers Journal Dairy Day a couple of weeks ago and he is determined to take action by way of legislation in 2018.
Strictly speaking, he is pushing the boundaries in this area as it gets into the territory of the European Commissioner for Competition Margrethe Vestager.
Speaking last week in Brussels at a high-level forum on the food supply chain, Hogan again highlighted that “farmers take home an increasingly diminishing share of the added value that is generated in the EU food chain … and that in 2018, the Commission will propose measures that to improve the functioning of the supply chain”.
Consultation
The consultation ran from August until November and received more than 1,500 responses.
Its ambition was to get information on three key issues relating to farmers' position in the supply chain – UTPs, market transparency and producer cooperation.
The European Commission expects to make legislative proposals on tackling UTPs in the first half of 2018.
More scope is given to farmers to form producer groups by way of an omnibus proposal that will take effect from the beginning of 2018.
The responses will feed into an impact assessment that will examine how to improve the supply chain but further work in market transparency is not expected until later next year.
Read more
Hello money and unreasonable demands imposed by supermarkets on farmers
UTP legislation key to protect farmers – and Hogan's legacy
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