Agri-food regulator set to protect farmers against unfair trading practices

The new regulations voted in by the European Parliament earlier this year will allow the Agri-Food regulator to co-ordinate enforcement actions on unfair trading

Cases of cross-border unfair trading practices damaging farmers and small producers of agricultural products will, as a result, be prevented, investigated, and punished. File picture

The Agri-food regulator will assist in protecting farmers against unfair trading practices.

The European Parliament on February 12 adopted new measures to protect European farmers from unfair trading practices (UTPs) by buyers of agricultural and food products. On March 5, the European Council adopted this regulation.

The aim is to ensure that farmers receive fair payment for their work. Cases of cross-border UTPs damaging farmers and small producers of agricultural products will, as a result, be prevented, investigated, and punished.

The regulation introduces a mutual assistance mechanism through which national regulators can exchange information or ask other authorities to collaborate on investigations into unfair trading practices. It also allows regulators to co-ordinate enforcement actions.

The regulation will also prevent operators from circumventing the law by moving outside of the EU, and the new rules also seek to protect producers from the unfair trading practices of non-EU buyers.

Buyers based outside the EU will have to designate “a contact person responsible for the EU” in case an investigation is opened against them. This person will be the primary point of contact for enforcement authorities and will be obliged to facilitate investigations into unfair trading practices.

To strengthen the protection of farmers, the new legislation will allow member states to intervene automatically and stop cross-border unfair trading practices on their own initiative without needing a complaint from a producer.

Key changes include: 

• member states to end cross-border unfair trading practices on their own initiative; 
• farmers to receive better protection from buyers both inside and outside the EU; 
• and information exchange between EU countries to coordinate responses.

Regulation (EU) 2026/697 of the European Parliament and of the Council of March 11, 2026, on co-operation among enforcement authorities responsible for the enforcement of Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain will enter into force in all member States across the EU on September 10, 2027.