Great concern for farmers in 'broken' supply chain, warns Commissioner

A well-functioning food supply chain is absolutely essential but many links are 'currently broken' according to EU Agricultural Commissioner Phil Hogan.

"Farming, food processing, retail and food service represent over 44 million jobs in 14 million businesses across the EU.

"We have to be honest honest to acknowledge that many links in our food chain are currently broken."

Hogan said it was a difficult time for dairy and pig farmers.

"Prices are currently very low and it is difficult to produce under these circumstances," he told an audience at Vilnius, Lithuania.

He said CAP provided farmers every year with more resilience against price shocks.

'Boosting competitiveness'

"EU food chain faces many opportunities but also many challenges.

"Globalisation, which can benefit us from a trade point of view, can also have the negative effect of concentrating bargaining power in the hands of the food processing and retail sectors

"For this reason, we need to work together to improve the functioning of the food chain.

"This is a responsibility we must take seriously."

He said many important trade opportunities had been opened but also exposed the food chain to greater market instability and volatility.

"We have lately seen this effect, in particular in the dairy and pigmeat sectors.

"The role and position of farmers in the supply chain continues to be of great concern to me."

Hogan said he decided to set up an Agricultural Market Task Force as a response.

The task force will provide the Commission with advice on how to address these challenges in areas like transparency, collective self-help tools, access to financing and futures, contractualisation and contractual relations.

It's overarching mandate is to strengthen the farmer's position in the food chain.