Strengthening Farmers' Position in the Food Supply Chain

Strategic Insights -

The Council of the European Union has approved the negotiating mandate on a targeted amendment of the regulation on the common market organisation of agricultural products (CMO) and the common agricultural policy (CAP). The proposed changes aim to empower farmers to negotiate better conditions in the food supply chain, ensuring fairer livelihoods and stabilizing their incomes. The updated rules aim to improve farmers' bargaining power, allowing them to make a dignified living from their hard work.

Key Takeaways:

  • The proposed amendments to the CMO regulation focus on strengthening farmers' role in the food supply chain by introducing written contracts, revising clauses, and streamlining producer organization recognition rules.
  • The Council supports the main elements of the proposal but suggests improvements, such as clarifying the obligation for written contracts and introducing exceptions for micro or small-sized enterprises.
  • Farmers will be able to trigger the revision clause for long-term contracts after 12 months, ensuring predictability and stability in the supply chain.
  • The new rules aim to improve farmers' bargaining power, ensuring fair and dignified livelihoods, and restore trust throughout the food supply chain.
  • Main elements of the proposal include improving the recognition of producer organizations, strengthening their associations, and encouraging young farmers to join.
  • The Commission proposed introducing compulsory written contracts for each delivery of agricultural products, with exceptions for micro or small-sized enterprises and same-day payment.

Statistics:

  • EUR20,000: maximum value of deliveries exempt from written contract obligation.
  • 12 months: time frame for farmers to trigger the revision clause for long-term contracts.

Sources:

  • Council of the European Union news release (Exact date not specified)