IFA president says "immediate steps" must be taken on UTPs

Chairing a meeting of the Committee of Professional Agricultural Organisations (COPA) Working Party on the Food Chain in Brussels on Wednesday, IFA president Joe Healy said that last week’s vote in the European Parliament adopting a report calling for more action to tackle Unfair Trading Practices (UTPs) in the food supply chain was welcomed by all member state farmer representatives.

In the resolution, adopted on 7 June, MEPs call on the European Commission to put forward proposals to tackle unfair trading practices in the food supply chain, as voluntary and self-regulatory schemes have so far had limited results.

Healy said the report recognises the negative impact of UTPs on producers and seeks to address the impact on farmers of late payments, food over-production, wastage and difficult trading relationships.

"It must now be taken on board by the European Commission and immediate steps must be taken to provide for an EU framework, including legislation, which will tackle the dominance of retailers and wholesalers in the food supply chain," he said.

The meeting was attended by Christiane Canenbley of EU Agriculture and Rural Development Commissioner Phil Hogan's cabinet.

Christine Canenbley Cabinet Hogan with IFA President Joe Healy at @copacogeca meeting on Food Chain this morning pic.twitter.com/hkKQ3QTGe2

— Irish Farmers' Assoc (@IFAmedia) June 15, 2016

In a video published on the same day as the COPA meeting, the EU Parliament highlights the particular case of a Belgian farmer, Jean-Yves Vancompernolle, who sells his produce wholesale and in his own farm shop.

The farmer used to sell strawberries to a big supermarket chain but they began to take less and less of his produce, saying the quality was not good, when, according to the farmer, the quality was perfect.

"The supermarkets have significant selling power and the power to put pressure on the producers," he said. "Happily I'm not dependent only on that market niche."

Edward Czesak, the Polish MEP leading the drive to implement legislation to tackle UTPs, says "suppliers find themselves in a disadvantaged position because the big chains dictate the terms".

Following the meeting today, Joe Healy said COPA will now contribute towards the Agricultural Markets Task Force which was set up by Commissioner Hogan to review the proper functioning of the agricultural market and whose final recommendations are due in autumn 2016.

In addition, Healy said he will ensure that the concerns of producers in the member associations are communicated to the High Level Forum Group for the Food Chain whose first meeting is scheduled to take place on 27 September 2016.

Grocery Codes Regulations

While the European Commission has yet to make a move on creating legislation on UTPs, the Irish government made a move in February 2016 by signing new grocery goods regulations into law. They do not include what farmers want most – a ban on below-cost selling - but they do include better trade terms for farmers dealing with big wholesalers and retailers, such as written contracts and payment within 30 days.

The regulations follow a commitment made in the Programme for Government 2011-2016 to deal with a number of unfair trading practices.

In the course of announcing the new regulations, the Irish government acknowledged that the EU Commission is also examining the issues of relationships in the food chain and that there may be some initiatives forthcoming in 2016. However, the government added that it recognised that there is "a need to do something now in Ireland on this issue".

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