Fairness in the food supply chain: Commission proposes to increase price transparency

food market

(Unsplash, 2019)

This article is brought to you in association with the European Commission.


Having banned unfair trading practices and improved producer cooperation, the Commission is today presenting the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain.

The European Commission today tabled a proposal that will make available crucial information on how prices are determined as agri-food products move along the food supply chain.

Buying and selling price differences can provide information about intermediary costs (such as transport, insurance, storage, etc.) between seller and buyer. Greater transparency can support better business decisions and improve trust in fair dealing between the stages in the food supply chain. Having access to timely and easily accessible information about market developments is also key to compete effectively in global markets.

Agriculture and rural development Commissioner Phil Hogan said: “Strengthening the position of farmers in the food supply chain has been a priority for the Commission. Enhancing market transparency will allow equal access to and greater clarity about price information, making our food chain fairer and better balanced. These new rules will complement the recently adopted directive banning unfair trading practices in empowering weaker and smaller actors of the food supply chain and their introduction reflects the very significant public support that there is throughout the EU to strengthen the role of farmer in the food supply chain.

While there is a large amount of information available about developments in agricultural markets (prices, volumes of production, stocks, etc.), there is almost no market information about other key markets in the agri-food supply chain, namely those that operate between farmers and consumers at the food processing and the retail level. This asymmetry of information between farmers and the other actors in the food supply chain puts farmers at a significant disadvantage in the market and erodes trust in fair dealing. This lack of information on market developments from processors and retailers has been called the ‘black box’ of the agri-food supply chain and today’s proposal unlocks that box.

The proposed measures will cover the meat, eggs, dairy, fruit and vegetables, arable crops, sugar, and olive oil sectors. They build on existing data collection systems and procedures that are already in place and used by operators and Member States to report market information to the Commission, with a now wider scope. Each Member State will be responsible for the collection of price and market data. The Commission recommends that Member States choose the most cost-effective approach and do not target small and medium-sized enterprises to reduce the administrative burden. Member States will communicate the data to the Commission, who will in turn make the monitoring available on its agri-food data portal and EU market observatories. It is essential that the information provided by the Member States is accurate and timely.

According to the Commission’s Better Regulation procedures, the proposal is now published for a 4-weeks’ public consultation period. It will then be adopted by the European Commission and is planned to enter into force six months after its adoption.

Background

The Commission has been working towards a fairer and more balanced food supply chain since the beginning of its mandate.

In 2016, the Agricultural Markets Task Force (AMTF) was set up with the aim of assessing the role of farmers in the wider food supply chain and make recommendations on how it can be strengthened and improved.

Based on these recommendations, the Commission launched an inception impact as­sessment and a public consultation on the improvement of the food supply chain in 2017, both of which covered three elements: unfair trading practices, producer cooperation, and market transparency.

An EU-wide opinion poll published in February 2018 shows that a great majority of respondents (88%) considers that strengthening farmers’ role in the food supply chain is important. Confirming this trend, 96% of the respondents to the 2017 public consultation on the modernisation of the CAP agreed with the proposition that improving farmers’ position in the value chain should be an objective of the EU’s Common Agricultural Policy.

The Commission presented last year its proposal to ban unfair trading practices in the food supply chain, which was voted by co-legislators in April 2019. These new rules will ensure the protection of 100% of European farmers as well as small and mid-range suppliers against unfair trading practices in the food supply chain.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

The three biggest challenges for India’s future

Planet’s Health is Our Health and the Reverse is True

EP President at the European Youth Event: “Your ideas are key in shaping EU’s future”

Greenhouse gas levels in atmosphere break another record, UN report shows

Shifting Tides: Policy Challenges and Opportunities for the G-20

Tunisia wants to change inheritance rules to boost gender equality

Israel @ MWC14: Israel The Start App Nation

European Youth Forum celebrates 20 years of fighting for youth rights

ITU Telecom World 2018 takes place in Durban, South Africa

Scientists can lead the fight against fake news

EU to spend €6 billion on youth employment and training futile schemes

SMEs are driving job growth, but need higher investment in skills, innovation and tech to boost wages and productivity

LETTER FROM AFGHANISTAN: Elections serve up food for thought, for Afghan youth

The refugee crisis brings to light EU’s most horrible flaws and nightmares

GSMA Reveals Shortlist For 2019 Asia Mobile Awards

Three countries losing ground and one new prime minister

WEF Davos 2016 LIVE: “No other problem has jeopardised the EU as much as the refugee question” Joachim Gauck, President of the Federal Republic of Germany, cries out from Davos

A Europe that Protects: Commission calls for continued action to eradicate trafficking in human beings

India is a latecomer to AI. Here’s how it plans to catch up

What people want – ignore at your peril

COP24 negotiations: Why reaching agreement on climate action is so complex

‘Deteriorating’ human rights in Belarus amounts to ‘wholescale oppression’: UN expert

Wide-ranging reforms needed to ensure Italy’s economic recovery

UN chief appoints Luis Alfonso de Alba as Special Envoy for the 2019 Climate Summit

There is no greater sorrow on earth than the loss of one’s native land

Food safety: New rules to boost consumer trust approved by MEPs

The world is a book and those who do not travel read only one page

UN chief condemns deadly attacks in Afghanistan

Women in Iceland have walked out of work to dispute the gender pay gap

Celebrate love, strengthen partnerships to end AIDS epidemic by 2030 says UN agency

Venezuela must guarantee judicial impartiality – UN human rights expert

Energy of African youth ‘propelling’ new development era as UN ties bear fruit

Industrial price dive may lead to point of no return

Sudan: UN chief deplores excessive force used against pro-democracy protesters, calls on military and civilian leaders to ‘stay the course’ in negotiations

3 ways blockchain can revolutionize global supply chains

We can decide to live within the limits of our planet

China-EU Special Report: Chinese Premier Li Keqiang endorses China’s big investment on Juncker’s plan at 10th China-EU Business Summit

Idlib deal could save three million ‘from catastrophe’ says UN chief, as militants are urged to lay down arms

The ECB still protects the banks at the expense of the EU taxpayers

Migrants, asylum seekers detained in Hungary ‘deliberately deprived of food’: UN human rights office

This is how Middle Eastern retailers can keep up with e-commerce

‘Global sisterhood’ tells perpetrators ‘time is up’ for pandemic of violence

“We need to accelerate our negotiation on the China-EU Investment Treaty”, Chinese Premier Li Keqiang highlights from the 21st EU-China summit in Brussels

These are the next big products in consumer technology

Will Cameron succeed in keeping UK inside the EU and reverse the present economic downturn?

Seize the opportunities of digital technology to improve well-being but also address the risks

A European young student shares his thoughts on Quality Education

EU elections: The louder the threats and the doomsaying the heavier the weight of the vote

3 things the G20 can do to save the World Trade Organization

Why a cash-free future might not be as close as you think

35th ACP-EU Assembly: migration and demographics will dominate the debate

Retirees will outlive their savings by a decade

Halting spread of drug resistance from animals to humans: deal with Council

Where does our food come from? Here’s why we need to know

European Investment Bank to borrow €70 billion in 2013

4 steps towards wiping out cervical cancer

Finland has giant supermarkets that only stock second-hand goods

Financial transactions tax gets go ahead

Parliament adopts its position on digital copyright rules

The European Union and the United States reach an agreement on imports of hormone-free beef

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s