The European Union strengthen farmers’ position in the food supply chain by tackling unfair trading practice

On 12th April, the European Commission proposed new legislation on unfair trading practices (UTPs). This is a very positive development and will offer more protection to farmers and small operators in the food industry who are selling to large European buyers. Most importantly, the legislation covers not only European suppliers, but also those selling into the EU from third countries.

Up to now, ACP fresh produce exporters supplying European supermarkets have been at risk to UTPs such as late payments, last minute order cancellations, and unilateral or retroactive changes to contracts. These practices make SMEs insecure and unwilling to invest, and can have a major impact on small farmers and workers, particularly women.

The Commission proposal will improve the position of farmers in the food supply chain by banning some of the most common UTPs that they face. Each EU member state will be required to designate a competent authority to enforce the new rules and, for the first time, there will be a standard level of protection across all EU countries. More details are available on: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/market-measures/food-supply-chain

This proposal is the result of several years of discussion and negotiations within the EC and in Member States, several of which have already introduced measures to control UTPs at a national level. Since the establishment of the High Level Forum in 2010 by DG Internal Market, COLEACP has engaged with EC initiatives and consultation designed to improve the functioning of the food supply chain. It has also collaborated with other organisations, in particular the Fair Trade Advocacy Office (FTAO), to provide evidence of the impact of UTPs on suppliers from ACP countries.

While COLEACP welcomes this move, it joins with Oxfam, FTAO, IFOAM-EU and FOE Europe in calling on the European Parliament and the Council to further strengthen the Commission’s proposal in order to further protect the most vulnerable people in food supply chains: https://www.oxfam.org/en/pressroom/reactions/key-step-taken-end-human-suffering-eu-supermarket-supply-chains