Sector urges legislation at EU level to combat unfair practices in food chain

"The price the farmer gets often does not even cover his production costs," the cooperative said
"The price the farmer gets often does not even cover his production costs," the cooperative said

In the run up to the EU farm ministers meeting the agricultural sector have called for legislation to be introduced at EU level to combat unfair practices in food chain.

The meeting, held in Bratislava next week, EU agri-cooperative Copa & Cogeca have called for legislation to be introduced at EU level to combat unfair trading practices in the food chain and to ensure a fair return for producers.

Copa & Cogeca Secretary-General Pekka Pesonen said: Farmers’ incomes across Europe are constantly being "squeezed".

"We believe that unfair trading practices can only be curbed by a combination of voluntary codes backed by legislation"
"We believe that unfair trading practices can only be curbed by a combination of voluntary codes backed by legislation"

"The price the farmer gets often does not even cover his production costs," Mr Pesonen said.

"We need a fair, transparent and functioning food supply chain, we believe it is good for farmers, for processors and retailers – and above all for consumers.

"It is the only way to ensure a sustainable farming sector," he said.

'Fair price and paid on time'

Mr Pesonen said the sector needs contracts between producers, processors and retailers that are enforced to ensure farmers are given a fair price for their produce and are paid on time.

"Voluntary agreements alone do not work," he said.

"We believe that unfair trading practices can only be curbed by a combination of voluntary codes backed by legislation and supported by a robust enforcement system so that operators are fined when they break EU law.

"An ombudsman would impose the fines when the codes of good practice are broken.

"Different initiatives are currently in place at national level but we need rules at EU level that can be enforced as large retailers are increasingly pan-European and regulation in one country will not prevent abuse across borders.

"Spain has recently introduced legislation that works well and it’s a good model for the EU to build on.

"The EU Commission knows there’s a problem and needs to come up with a proposal," Mr Pesonen concluded.