Unfair Trading Practices (UTPs) in the agricultural and food supply chain :  annual survey

Unfair Trading Practices (UTPs) in the agricultural and food supply chain :  annual survey

Since the adoption of Directive 2019/633 on Unfair Trading Practices (UTP), the Commission has carried out four annual surveys of food chain operators’ experiences regarding UTP. The main findings of these earlier surveys are:

• 75% of respondents to the survey have experienced at least one UTP, with 11% experiencing more than five UTP
• UTPs were most frequently experienced in the context of sales to wholesalers (40%), followed by those to retailers (38%), and to commodity traders (26%)
• awareness of the EU UTP Directive was greatest among secondary processers (78% of respondents) and weakest among organic producers (59%)
• the UTP most frequently experienced was late payments (31% related to non-perishable food, 20% to perishable food); this was followed by the buyer’s refusal to provide written confirmation of a supply agreement (10%); passing on to suppliers costs related to product deterioration at the buyer’s premises (9%); and suppliers being required to bear the costs of discounts on promoted products even where not previously agreed (9%)
• 35% of respondents have never raised UTPs with buyers, and 66% have never addressed these issues with public enforcement authorities
• 27% of respondents do not raise UTP issues beause they fear retaliation by the buyer, and 21% because they are unaware that public bodies can handle the issues.

The EC has now launched its 2024 survey. This fifth survey will be open until 17 December 2024 and the results will feed a more detailed evaluation of the UTP Directive in 2025 to assess its effectiveness, and possibly refine its scope and enforcement mechanisms. See the following AGRINFO record for more information.

We invite you, as key players in the agricultural and food trade, to review the survey and provide feedback, directly or through your representative trade bodies.

This initiative is line with COLEAD’s broader efforts to address economic inequalities in agri-food supply chains, improve market transparency, and promote sustainable agricultural practices that benefit all stakeholders. Through the FFM+ programme. In this context, COLEAD will be officially signing and supporting the latest position paper from the Coalition to Fight Unfair Trading Practices (UTP). The position paper calls for essential revisions to the “UTP” Directive, with a focus on prohibiting unfair practices such as purchasing below the cost of sustainable production and selling at a loss. These issues are particularly important given the rising input costs and global market pressures that agri-food producers are currently facing. The Global Coalition for Fresh Produce (GCFP), of which COLEAD is also member, has been actively highlighting these challenges, emphasizing the need for regulatory measures to protect producers both within and outside the EU.

This activity is supported by the Fit For Market Plus (FFM+) programme, implemented by COLEAD within the Framework of Development Cooperation between the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union. This publication receives financial support from the European Union and the OACPS. The content of this publication is the sole responsibility of COLEAD and can in no way be taken to reflect the views of the European Union or the OACPS.