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Unfair trading practices in the agricultural and food supply chain

Agriculture and rural development

The Directive on unfair trading practices in the agricultural and food supply chain sets minimum rules that aim at improving the protection of farmers and small and medium sized suppliers in the agricultural and food supply chain. This evaluation will assess the degree to which it achieved its objectives with respect to the first years of implementation.

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Public consultation

ID: 13826

Lobbying Activity

21 responses

EuroCommerce Urges Focus on Farmers Over Large Food Suppliers

EuroCommerce, 29 Nov 2023

EuroCommerce requests more time to evaluate the rules due to unstable market conditions. They argue the Directive should focus on farmers instead of large multinational suppliers.
Narrower rules would reduce legal uncertainty and compliance costs for retailers operating cross-border.
Consumers face higher prices if retailers cannot pressure large manufacturers to lower margins.

European farmers urge tougher rules against unfair trading practices

European farmers, 29 Nov 2023

The group demands an expanded list of banned practices and the removal of size-based protection limits. They also want anonymous complaint systems to overcome the fear of retail retaliation.
Broader protections would help farmers recover billions lost to unfair commercial practices.
Large retailers would lose the ability to unilaterally shift costs onto producers.

European agri-cooperatives urge tougher rules against unfair trading practices

European agri-cooperatives, 29 Nov 2023

Copa-Cogeca supports the extension of the Directive to non-food products and removing threshold levels. They request moving certain negotiated practices to the prohibited list to address power imbalances.
Strengthening these protections helps farmers secure fairer prices and reduces financial losses from buyer power.
Large retailers face stricter limits on bargaining tactics and significantly higher financial penalties for infringements.

FoodDrinkEurope calls for unfair trading protections for all suppliers

FoodDrinkEurope, 29 Nov 2023

The organization advocates for expanding legal protections to all suppliers by removing the turnover threshold. They also want to prohibit practices like unreasonable delisting and automatic logistics penalties.
A level playing field would protect large manufacturers currently excluded from unfair trading rules.
Supermarkets and large retailers lose the ability to automatically deduct logistics penalties from payments.

Ibec urges EU protection for all food supply companies

Ibec, 27 Nov 2023

Ibec requests extending the Directive's scope to cover all suppliers regardless of size. This would ensure a level playing field and prevent market fragmentation.
Large food and drink firms would finally benefit from legal protections against unfair practices.
Smaller suppliers lose business as buyers favor larger, unprotected firms to avoid regulations.

IFOAM Organics Europe urges stronger enforcement of fair trading rules

International Federation of Organic Agriculture Movements EU Regional Group, 29 Nov 2023

The group demands better enforcement of rules and awareness for vulnerable operators. They want to prohibit below-cost selling and turn grey practices into black ones.
Stronger rules would provide organic producers with fairer prices and reduced retaliation risks.
Large buyers would lose the power to exploit suppliers through market concentration.

Danish Chamber of Commerce warns against over-regulating food supply chains

The Danish Chamber of Commerce, 29 Nov 2023

They advocate for a light touch approach to avoid over-regulation and unintended consequences. The Commission should distinguish between illegal late payments and negotiated long payment terms. They also demand an end to rules that protect large multinational firms.
Retailers and small buyers would regain bargaining power currently restricted by rigid rules.
Large multinational suppliers would lose legal protections they exploited from national implementation rules.

Consultation response

AIM - European Brands Association, 29 Nov 2023

See our feedback attached.

Consultation response

Independent Retail Europe (formerly UGAL - Union of Groups of Independent Retailers of Europe), 29 Nov 2023

See our feedback attached.

European Milk Board demands prices always exceed production costs

European Milk Board, 20 Oct 2023

The board calls for mandatory minimum prices that cover all production costs, including farm manager income. They propose that the EU calculate these costs quarterly to serve as a binding reference for all contracts.
This would ensure dairy farmers receive stable income and avoid selling at a loss.
Retailers and consumers would lose access to low-cost food and deep-discount pricing.

Landwirtschaftskammer Österreich seeks better dispute resolution for farmers

Landwirtschaftskammer Österreich, 30 Oct 2023

They propose adding a system where parties are invited to join an out of court dispute solving process. They also suggest evaluating how structural imbalances between suppliers and retailers drive the practice of UTPs.
Improved enforcement would foster the position of the weaker partners against larger buyers.
Retailers face increased oversight of structural imbalances that favor their market dominance.

LTO Nederland Urges Anonymous Reporting of Unfair Trade Practices

Land- en Tuinbouw Organisatie Nederland, 29 Nov 2023

LTO Nederland requests that branch organisations submit complaints for members to protect their identity. They also advocate for annual reports on complaint numbers from competent authorities. Furthermore, sustainability agreements with price premiums should be included in the rules.
This would shield farmers from retaliation while ensuring they receive premiums for sustainability.
Buyers and retailers would face stricter enforcement and higher costs for sustainable products.

Coordination Rurale urges EU ban on low agricultural prices

Coordination Rurale Union Nationale, 14 Nov 2023

The union demands an urgent ban on purchasing agricultural products at prices below production costs. They also call for mirror and safeguard clauses to protect farmers from international competition distortions.
This policy would allow farmers to earn a dignified living while covering environmental costs.
International exporters would lose market access due to stricter reciprocity and safeguard requirements.

Consultation response

Assoziation ökologischer Lebensmittelherstellerinnen und -hersteller e.V., 24 Nov 2023

Sehr geehrte Damen und Herren, mit der Richtlinie zur Bekämpfung unlauterer Handelspraktiken und der nationalen Umsetzung in den EU-Staaten liegt eine gute gesetzliche Grundlage vor. Jedoch stellen wir fest, dass sich die Situation trotz der zahlreichen Bemühungen der nationalen Behörden auch…

Consultation response

Milchindustrie-Verband e.V., 28 Nov 2023

The Directive on Unfair Trading Practices and its implementation in Germany has proven effective in reducing several unfair trading practices used by companies buying dairy products. Many contracts have been adjusted. The contact and exchange with the implementing agency works well, but it lacks…

Consultation response

Unión de Uniones de Agricultores y Ganaderos, 29 Nov 2023

Unión de Uniones de Agricultores y Ganaderos (TR ID) Registro de Transparencia 643875852019-50 Tras la entrada en vigor de la Directiva (UE) 2019/633 del Parlamento Europeo y del Consejo, de 17 de abril de 2019, relativa a las prácticas comerciales desleales en las relaciones entre empresas en la…

Consultation response

Comité National des Interprofessions des Vins à appellation d’origine et à indication géographique, 17 Nov 2023

Le Comité National des Interprofessions de Vins à Appellation dOrigine et à Indication Géographique (CNIV) soutient la réglementation européenne actuelle pour les mesures mises en place et rappelle la nécessité de conserver ces délais de paiement légaux et les dérogations qui y sont attachées pour…

Consultation response

UNION DE PEQUEÑOS AGRICULTORES Y GANADEROS, 29 Nov 2023

La Unión de Pequeños Agricultores y Ganaderos (UPA) es una organización profesional agraria que agrupa, representa y defiende los intereses de los profesionales de la agricultura y la ganadería en España. UPA cuenta con más de 80.000 afiliados en toda Españas cuyos titulares son pequeños y medianos…

Consultation response

Latvian Chamber of Trade, 19 Oct 2023

Iespējams, tas ietekmēja negodīgas komercprakses apkarošanu sākotnējā posmā - starp ražotāju un pārstrādātāju. Diemžēl, tas neatrisināja komunikācijas efektivitāti starp ražotāju un globālo tirgotāju (piemēram, RIMI), kā arī nesekmēja mazo tirgotāju konkurences spēju paaugstināšanu, saglabājot…

Consultation response

Päivittäistavarakauppa ry - Finnish Grocery Trade Association, 29 Nov 2023

The Finnish Grocery Trade Association gives feedback by attaching a file.

Consultation response

Institut de Liaison des Entreprises de Consommation, 29 Nov 2023

L'Ilec-La Voix des marques représente plus de 100 fabricants de grandes marques dans le secteur des produits de grande consommation. Ces fabricants sont présents dans tous les territoires de France avec plus de 1000 sites, dont 500 sites industriels. Ils emploient directement 150 000 collaborateurs…