Sunday

1st Oct 2023

EU watchdogs to protect farmers

  • Because farmers' products are perishable, farmers need extra protection against unfair trading practices, the European Commission will argue (Photo: Masahiro Ihara)

The European Commission is due to propose that every EU member state set up a national watchdog that can protect farmers against unfair trading practices like last-minute order cancellations or late payments.

Agriculture commissioner Phil Hogan is scheduled to unveil the legislative proposal on Thursday (12 April), a leaked draft version of which was seen by this website.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • EU agriculture commissioner Phil Hogan: 'open markets and free trade exposes a sector which was previously protected to greater risks and challenges' (Photo: European Commission)

The draft said that farmers need additional protection because their products by nature can quickly lose their value in case of a sudden disruption in the supply chain.

"While business risk is inherent in all economic activity, agricultural production is particularly fraught with uncertainty due to its reliance on biological processes, since agricultural products are to a greater or lesser extent perishable and seasonable, and its exposure to weather conditions," said the bill.

During the first decades of the EU's common agricultural policy (CAP), which was established in the 1960s, farmers knew how much to produce.

But the commission noted in the draft that agriculture has become "distinctly more market-oriented", requiring protection for farmers against unfair trading practices.

"The European Commission strongly supports continued market orientation in the sector, for the benefit of farmers, agri-businesses and the European consumer in general," Hogan said last December in a speech.

"But we also acknowledge that open markets and free trade exposes a sector which was previously protected to greater risks and challenges," the Irish commissioner added.

The bill aims to make it illegal for a company, like a retailer, to cancel orders of perishable food products "at such short notice that a supplier cannot reasonably be expected to find an alternative commercial outlet for these products".

It also said that retailers buying from farmers should pay invoices within thirty calendar days after receipt.

That is a tighter requirement than the already existing general obligation for businesses under the late payment directive, which requires payments within sixty days - and 30 days for public authorities.

Another banned practice will be: "a buyer changing unilaterally and retroactively the terms of the supply agreement concerning the frequency, timing or volume of the supply or delivery, the quality standards or the prices of the food products".

The draft directive would require each EU member state to set up an enforcement authority at national level, where farmers could report unfair practices anonymously - in the hope that they would overcome fears of retaliation by the buyer.

The enforcement authority would need to be given the power to investigate cases and hand out "effective, proportionate, and dissuasive" fines.

Minimum standard

The draft text stressed that a majority of member states already had - diverging - rules on unfair trading practices.

"A minimum Union standard of protection against unfair trading practices should help reduce those practices and contribute to ensuring a fair standard of living for the agricultural community," it noted.

The draft directive needs to be approved by the European Parliament and the Council of the EU – where national governments meet - before it can become law.

During that legislative process, these two EU institutions can still amend the directive.

EU farm chief questions own milk scheme

The EU just ended milk quotas. On Monday it reinstated them on a voluntary basis after prices crashed. But the EU commission itself doubts the new scheme will work.

NGOs expose rights abuses in EU supermarket supply chains

A new report from Oxfam reveals that many of the people producing the food on sale in European supermarkets are victims of poverty pay, harsh working conditions, gender discrimination, and human rights abuses.

Opinion

How do you make embarrassing EU documents 'disappear'?

The EU Commission's new magic formula for avoiding scrutiny is simple. You declare the documents in question to be "short-lived correspondence for a preliminary exchange of views" and thus exempt them from being logged in the official inventory.

Latest News

  1. EU women promised new dawn under anti-violence pact
  2. Three steps EU can take to halt Azerbaijan's mafia-style bullying
  3. Punish Belarus too for aiding Putin's Ukraine war
  4. Added-value for Russia diamond ban, as G7 and EU prepare sanctions
  5. EU states to agree on asylum crisis bill, say EU officials
  6. Poland's culture of fear after three years of abortion 'ban'
  7. Time for a reset: EU regional funding needs overhauling
  8. Germany tightens police checks on Czech and Polish border

Stakeholders' Highlights

  1. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  2. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  6. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch

Stakeholders' Highlights

  1. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations
  2. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  3. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  4. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  5. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  6. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics

Join EUobserver

Support quality EU news

Join us