Deal on measures to reinforce farmers’ position in the food supply chain

On Thursday, Parliament and Council negotiators agreed on new provisions to strengthen the contractual position of farmers to help stabilise their income. The informal agreement reached by the co-legislators seeks to ensure that the final prices of food products reflect multiple factors, notably the actual costs of production that are borne by farmers and that have a direct impact on their income. Among the agreed measures, member states would be required to establish and publish online indicators to be used as benchmarks in contractual arrangements.

The agreed text also includes provisions to reinforce the role of producer organisations (POs) in market organisation and collective bargaining, such as having POs engage directly with buyers and setting up rules to prevent buyers from contacting individual producers directly.

Labelling and marketing
The provisional agreement clarifies use of the terms “fair” or “equitable” for agricultural products and lists the criteria for allowing such labelling. Thanks to Parliament’s negotiators, such criteria would, for instance, include a product’s contribution to rural community development and the promotion of farmer organisations.

The agreed text would also introduce a definition of meat as “edible parts of animals” and specifies that names, such as steak and liver, must be reserved for products containing meat and must exclude lab-grown products. The term “short supply chain” on labels or in advertising should only be used for goods that are produced in the EU with a limited number of intermediaries between the farmer and the final consumer, or that are handled over a short distance or during a short traveling time.

Support for the dairy sector
Finally, the co-legislators agreed on measures, such as mandatory written contracts to support dairy producers’ incomes in light of the challenging conditions faced by the sector. Such contracts would have opt outs for price indicators, and revision clauses.

Source: European Parliament