Farmer organisations have been calling for some time across Europe for legislation to curb the power of the buyers along the chain in processing and retail. Predictably it has been rejected, with EuroCommerce, who represent retailers and wholesalers, writing to the Slovak Farm Minister and current Council chair last week saying “presenting regulation of trading practices and other aspects of the supply chain at EU level as the remedy to farmers’ problems is simply misleading.”
Farmer organisations have been calling for some time across Europe for legislation to curb the power of the buyers along the chain in processing and retail.
Predictably it has been rejected, with EuroCommerce, who represent retailers and wholesalers, writing to the Slovak Farm Minister and current Council chair last week saying “presenting regulation of trading practices and other aspects of the supply chain at EU level as the remedy to farmers’ problems is simply misleading.”
They put the current problems down to what they call short-term structural market issues, saying that no legislation can make that structural challenge go away.
Open mind
With 20 EU member countries having some sort of legislation on unfair trading, there is a growing mood in the commission following the issue being centre point of the Slovak chaired council of Ministers meeting today and continuing on Wednesday.
Speaking at a pre-council dinner on Monday evening, EU Agriculture Commissioner Phil Hogan appeared to be open to the idea of legislating, saying that he would listen very carefully to the “views and experience in respect of the presidency´s question on the utility of a common framework on Unfair Trading Practices”.
Momentum for legislation
Hogan also referenced the market transparency issue, noting “we have a reasonably good understanding of farm-gate prices. However, less information is available concerning the subsequent stages in the supply chain. There are arguments that this is a deficiency which should be addressed by regulatory action.”
He also mentioned the work of a task force he appointed to look at the place of the farmer in the food chain.
Hogan concluded with a note of caution saying that “measures such as the ones we may have in mind can improve the situation to a degree but not turn the basic laws of supply and demand on their head.
Driven by the Slovak Presidency and with the EU Agriculture commissioner open minded, it is clear that there is momentum gathering for some sort of legislation on unfair trading practices.
President of the European Commission Jean-Claude Junker is due to give his state of the union address on Wednesday morning and it will be closely to see if he picks up on the issue.
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