MEPs call on Commission to help farmers fight unfair trading prices

There were calls in the EU Parliament today for action on unfair trading practices.

MEPs urged the European Commission to put forward proposals against unfair trading prices to ensure fair earnings for farmers.

Parliament rapporteur Edward Czesak said the initiatives taken so far have not been effective.

“That’s why we give more suggestions. More work should be done to improve relations between suppliers and supermarkets and hypermarkets, especially when it comes to minimising the so-called ‘fear factor’.

“We also call on the European Commission to do more when it comes to new tools that should help us to counteract unfair trading practices.”

The resolution, which was approved by 600 votes to 48, with 24 abstentions, says income and power imbalances in the food supply chain must be tackled as a matter of urgency in order to improve farmers’ bargaining power.

Vote welcomed by farming organisations

MEPs also stressed that selling below cost of production and the serious misuse of basic agricultural foods such as dairy, fruit and vegetables as “loss leaders” by large-scale retailers, threaten the long-term sustainability of EU production of these items.

They also said farmers and small- and medium-sized businesses are particularly vulnerable to unfair trading practices.

Farming organisations this afternoon have welcomed the vote calling for more action.

IFA president Joe Healy called on Commissioner for Agriculture Phil Hogan to introduce an “EU-wide approach so that Irish and other EU farmers are protected from the existing exploitation in the supply chain”.

Copa-Cogeca, the organisation representing European farmers, said EU solutions are necessary to address EU-wide problems.

Pekka Pesonen, secretary general of Copa-Cogeca, said: “It is unacceptable that farmers from across Europe are being squeezed further and further by processors and retailers. The price the farmer gets often does not even cover his production costs. Below-cost selling must stop.

“We also welcome recognition by MEPs that strengthening and establishing producer organisations must go hand in hand with strengthening farmers’ bargaining power in the food chain. In this respect, we believe that prices paid to farmers must better reflect the added value generated by farmers and their agri-cooperatives and that they receive a better share of the consumer euro,” he added.

A constant concern

Fine Gael MEP Mairead McGuiness was present and said: “Today’s vote comes at a time of intense pressure on agricultural markets, with low product prices and concerns about the viability of many farm families. The issue of unfair trading practices is a constant concern for producers. They are generally powerless to regulate the price they get paid for their produce, which tends to be set by a much smaller number of stakeholders in the supply chain with enormous power to dictate terms and conditions.

“Today, the European Parliament voted in favour of an internal market report and a call for an EU-wide framework legislation to tackle this issue. This vote is significant in sending a strong signal to the European Commission calling for greater action, and is a warning to those who engage in unfair trading practices that their actions will not be tolerated.”

The pressure on the European Commission comes weeks after the new Grocery Goods Regulations came into force, after year of lobbying by farmers. Despite this, the new regulations do not include what farmers want the most – a ban on below-cost selling.

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Grocery regulations in force next week