Strengthening of the position of farmers in the food supply chain

The European Parliament adopted by 532 votes to 78, with 25 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116 as regards the strengthening of the position of farmers in the food supply chain.

The matter was referred back to the relevant committee for interinstitutional negotiations.

The main amendments adopted in plenary are as follows:

Contractual relations and producer organisations

Members support the establishment of mandatory written contracts for the delivery of agricultural products. Member States may decide that producer organisations, associations of producer organisations or farmers should make a written offer for a contract for the delivery of agricultural products to the first purchasers.

Member States will establish a mediation mechanism to cover cases in which there is no mutual agreement on the formalisation, interpretation or fulfilment of a contract.

The contract drawn up in writing, in digital form or on paper, must include:

- the price payable for the delivery with explicit indication of all payments, including applicable discounts, which will be calculated by combining various objective, verifiable and non-manipulable factors including objective indicators that reflect changes in market conditions, inflation, full production costs, including the remuneration of farmers, the total costs for additional services, the quantities delivered and the quality or composition of the agricultural products delivered;

- a revision clause that may be triggered, in particular, by the farmer, a producer organisation or an association of producer organisations, on the basis of unforeseen circumstances, such as extreme weather events, animal disease outbreaks, geopolitical tensions, or any other reason that prevents the agreed price from covering the farmers’ costs;

- details regarding payment periods, procedures and the point in time in which the ownership and risk transfer.

Members proposed that EU Member States may exempt specific sectors of that obligation at the request of an organisation representing the sector. In addition, Member States may decide that neither a written contract nor a written offer are required in one or more of the following cases:

- the delivery concerns products of a value equal to or below a threshold to be determined by the Member State, which will not exceed EUR 4 000 (compared to EUR 10 000 proposed by the Commission);

- the first purchaser of the agricultural products concerned is a micro or small-sized enterprise;

- the delivery and payment of the agricultural products concerned take place simultaneously or at the latest within 5 working days.

To avoid unnecessary competition between production models, Members opposed the creation of organic producer organisations.

Labelling and marketing

Members want more clarity on the use of the terms ‘fair’ or ‘equitable’ for agricultural products and want the criteria for allowing such labelling to include:

- stability, including through contracts between producers and buyers to limit the impact of economic uncertainties, traceability and transparency in the relations of farmers with purchasers along the supply chain;

- promoting the development of democratically managed collective organisations of farmers;

- payment of an additional amount to the producer, in particular to fund joint projects;

- a price considered equitable and remunerative by participating farmers for their products and work;

- the contribution of products to the development of rural communities.

According to Members, the term ‘short supply chain’ on labels or in advertising should only be used for products produced in the EU with a limited number of intermediaries between the farmer and the final consumer or for products that are handled over a short distance or for a short period.

The Commission will assess the feasibility and added value of introducing a harmonised Union visual label on short supply chain products.

Pesticides in imported food

Members added a condition to the new rules, according to which food and feed of plant and animal origin may only be imported from third countries if they comply with obligations related to the maximum residue levels of pesticides in food and feed produced in the Union.

Public procurement

Members States will ensure that supply contracts awarded under public procurement procedures are sourced from agricultural and food products originating in the Union, in particular using local and seasonal products. Priority should be given to products with EU geographical indications.