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.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

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

State aid: Commission invites interested parties to provide comments on proposed draft Climate, Energy and Environmental State aid Guidelines

Parliament gives green light to EU-Singapore trade and investment protection deals

COVID 19 Vaccine: A new terror or a savior for mankind?

Cyprus President urges collective leadership to address ‘root causes’ of world’s crises

EU Budget 2021 approved: supporting the recovery

Obama turns the G20 summit into warmongering platform

This is how many people are forcibly displaced worldwide

EU food watchdog: more transparency, better risk prevention

COVID-19: What you need to know about the coronavirus pandemic on 9 April

Smart toys: Your child’s best friend or a creepy surveillance tool?

Draghi will not hesitate to zero ECB’s basic interest rate

Biggest London City Banks ready to move core European operations to Frankfurt or Dublin?

Ukraine: EU report notes continued implementation of the reform agenda though challenges remain

EU: Turkey to shelter Syrian refugees and turn other immigrants back in return of €3 billion

UN working to prevent attacks on civilians in eastern DR Congo

CLIMATE CHANGE FOCUS: Cows, coffee and sustainable farming

The world invested almost $2 trillion in energy last year. These 3 charts show where it went

Anti-vaccers: does the empty can rattle the most?

EU consumers will soon be able to defend their rights collectively

Could robot leaders do better than our current politicians?

MWC 2016 LIVE: Industry looks to reduce mobile gender gap

Why education and accountability are important for developing countries?

The metamorphosis of the categorical imperative in medical students

How should cities prepare for self-driving cars? Here’s a roadmap

EU fight against tax-evasion and money laundering blocked by Britain

UN chief welcomes Taliban’s temporary truce announcement, encourages all parties to embrace ‘Afghan-owned peace’

Although Greece is struggling to pay salaries and pensions Varoufakis is “optimistic”; the Sting reports live from EBS 2015

Coronavirus Global Response: EIB and Commission pledge additional €4.9 billion

Industry 4.0: Championing Europe’s fourth industrial revolution

A European young student shares his thoughts on Quality Education

France: New labour laws for more competitiveness

EU adopts rebalancing measures in reaction to US steel and aluminium tariffs

Employment and Social Developments in Europe: 2018 review confirms positive trends but highlights challenges, in particular linked to automation and digitalisation

The more we learn about Antarctica, the greater the urgency to act on climate change

Dare to be vulnerable, and three other lessons in leadership

Lorenzo Natali Media Prize 2019: winners of EU’s development journalism award unveiled

A silent killer: the impact of a changing climate on health

Switzerland to introduce strict restrictions on executive pay

Ahead of State of the Union the European Youth Forum highlights lack of action on youth employment

The Challenger Within – Mental Health In Romania During Lockdown

10 ways COVID-19 could reshape offices

Why salaries could finally be on the way up

Problems Faced by Young Doctors and What We Can Do About Them

How big data can help us fight climate change faster

Hydrogen power is here to stay. How do we convince the public that it’s safe?

EU Facility for Refugees in Turkey: €6 billion to support refugees and local communities in need fully mobilised

Promoting Health in the Brazilian Amazon: one nation but many cultures

Here’s what happened when a charity gave $1,000 each to poor households in Kenya

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

Armenia should take vigorous measures against entrenched corruption

State aid: Commission approves €1.25 billion German measure to recapitalise TUI

How Britain’s backyard bird feeders are shaping evolution

The EU responds to US challenges by fining Apple with €13 billion

Only international actions can settle the world’s ‘enormous and diverse cross-border challenges’, Qatar tells UN Assembly

Questions & Answers on vaccine negotiations

Brain drain 2017: why do medical students need to emigrate to become doctors in 2017?

Investment and Financing under the Belt and Road Initiative (BRI): EU and Chinese stakeholders share their views at European Business Summit 2018

World Malaria Day: 7 things to know about the deadly disease

Systems leadership can change the world – but what exactly is it?

Commission launches open access publishing platform for scientific papers

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