- 30/01/2025
- Posted by: Sandra Borma
- Category: News
Media coverage of the farmers’ protests in 2023-2024 highlighted the immense challenges facing the agricultural sector. Rising costs, pressure from retailers, mounting debt and the effects of climate change are threatening the viability of farms, affecting not only producers but the entire agri-food supply chain. In particular, these mobilisations call for fair prices and concrete mechanisms to protect farmers from their structurally vulnerable position in the food chain.
In this context, and in line with its long-standing advocacy for fairer trade, COLEAD recently co-signed a position paper calling for an urgent review of the EU’s Unfair Trading Practices (UTP) Directive.
This initiative aims to ensure greater fairness and better distribution of value throughout the agri-food supply chain, while strengthening the sustainability of the sector.
Towards ambitious and effective reform
The position paper proposes a series of ambitious measures that are essential if farms are to survive and a fair and sustainable food system is to be created:
- General prohibition of unfair trade practices: Adopt a global ban to discourage unfair practices that undermine human and workers’ rights.
- Ban on buying below cost of production: Guarantee that agricultural products cannot be purchased below the cost of sustainable production, for both EU and non-EU suppliers.
- Fair price transmission: Prohibit the sale of products below their purchase price to ensure a balanced distribution of value.
- Elimination of other harmful practices:
o Delisting of retaliatory products.
O Prohibiting ‘double-run’ auctions that drive down prices.
O Preventing abuses linked to economic dependence.
O Mandatory renegotiation of contracts in the event of unforeseen circumstances.
- Strengthen the Agri-Food Chain Observatory (AFCO): Increase its budget and powers to extend monitoring to imported products and strengthen cooperation with the competition authorities.
- Improve access to complaint mechanisms:
o Raising awareness.
O Multilingual resources and simplified online forms.
O Encourage ex officio investigations to limit fears of retaliation.
- Deterrent sanctions and compensation: Introduce fines proportionate to the global turnover of offenders and ensure compensation for victims.
A common vision for sustainable and resilient agriculture
In the spirit of the EU policy guidelines, which state that “farmers must receive a fair and adequate income and not be forced to sell below the cost of production”, this position paper is a strong call to action. COLEAD remains committed to working with its partners to promote a fair and sustainable agri-food supply chain for the benefit of farmers, businesses and consumers.
The document has been co-signed by several influential organisations, including Oxfam, Fair Trade Advocacy Office and IFOAM – Organics International, strengthening its reach and legitimacy.
This collective signature underlines the importance of collaboration and commitment to positive change in the agricultural sector. Together we can help restore economic and social justice in business-to-business relations and ensure a sustainable future for generations to come.
To read the full position paper, please click here: Full position paper.
