EU Commission urged to combat abusive practices in food chain

The incoming European Commission is set to face mounting pressure for stronger action to combat unfair and abusive practices in the food chain.

Copa Cogeca, the umbrella body for EU farmers and co-ops, welcomed the Commission’s recent recognition that these practices existed but it warned that a much more ambitious and stronger approach was needed.

Secretary-general Pekka Pesonen said the harmful impact of unfair practices on farmers and agri-co-operatives was all too clear.

“I am glad that the Commission acknowledges that we need to look at ways to protect producers and co-operatives from these. But I am very disappointed at the lack of ambition in the report.

“What we need are measures capable of curbing unfair trading practices across the EU and preventing a fragmentation of the single market,” he said.

Mr Pesonen said the report does not provide tools for member states to ensure that the rules are properly enforced.

Copa-Cogeca believes a mixed system combining voluntary codes with legislation enforced by an independent third-party authority was the best way forward. It said this would ensure a fair, transparent, sustainable and functional food supply chain throughout the EU to the benefit of all actors in the chain, including consumers.

“Farmers want to work with their supply chain partners in a spirit of fairness for everyone, not in a climate of fear,” Copa-Cogeca said.

Mairéad McGuinness, MEP and vice-president of the European Parliament, has also called on the new EU Commission to urgently tackle unfair trading practices in the food supply chain.

She said the imbalance in power between producers and retailers and other layers of the food supply chain resulted in unfair and unethical practices.

The powerful impose conditions on the powerless in an unfair manner, leading to reduced margins, impossible specifications demands and poor returns for investment outlay, she said.

Ms McGuinness said various member states had taken initiatives and there was now a voluntary supply-chain initiative at EU level that came very late in the day in an attempt to address the issue.

“Farmers have remained outside the voluntary initiative, believing it to be a weak and ineffective tool to monitor and police unfair practices.

“I firmly believe the Commission is placing too much emphasis on the voluntary initiative and now looks set to delay any further action until 2016,” she said.

Ms McGuinness said there were many stakeholders in the food supply chain who did not want any action at EU level other than the “soft” approach of a voluntary code of conduct.

“However, voluntary codes cannot be relied upon to deliver a sustainable EU food supply chain,” she said.