MEP urges EU legislation to tackle unfair practices in food supply chain
Fine Gael MEP for the Midlands North West Mairead McGuinness issued the call in Brussels yesterday when pressing the Commission to prioritise the issue.
“The voluntary code of conduct at EU level agreed between stakeholders in the supply chain is insufficient to deal with the issue. It is too little and too late,” she said.
Ms McGuinness said the new Commission needs to bring forward legislation to provide for a sustainable food supply chain, one that acknowledges the need for a fair return to producers and to everyone involved.
“Every EU country has concerns about the food supply chain and several have taken action at a national level but a co-ordinated European response is what is needed,” she said.
Ms McGuinness said the below cost selling arises from intense competitive pressure on the fruit and vegetable sector imposed by supermarkets fighting for customers.
“It is killing the sector, it is unsustainable and it will ultimately lead to higher prices for consumers,” the MEP warned.
She said she had been contacted by several producers and businesses who fear closures and job losses.
“The key problem is the complete lack of transparency around pricing in supermarkets.
“Special offers are attractive to consumers today, but someone must pay the price for these special offers,” she said.
Ms McGuinness said problems in the food supply chain have been recognised in recent years.
Some efforts have been made at EU level to tackle the worst excesses of these unfair practices which work against the interests of producers and others in the food supply chain.
“Producer concerns need to be addressed. Producers are at the start of the food supply chain and yet they are price takers not price makers.
“Their fears for their future whether in the fruit and vegetable sector or the livestock sector must be taken into account.
“The pressures they face are severe in terms of market prices and also in terms of input costs.
“We need much tougher scrutiny of agriculture markets, including concentration of buying power by large food processors and retailers and input suppliers.
“This is a crucial issue for the new EU Commission to tackle when it is constituted. It will require co-ordination between the Competition, Agriculture and Internal Market Commissioners,” she said.
