Strengthening of the position of farmers in the food supply chain

The European Parliament adopted by 560 votes to 75, with 25 abstentions, a legislative resolution on 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.

Parliament adopted its position at first reading by amending the proposal as follows:

Optional information regarding commercial terms

The term ‘fair’ or ‘equitable’ or any similar expression may be used on the labelling of an agricultural product, provided that they inform purchasers about existing modalities for the organisation of production, distribution, or placing on the market, that aim to ensure at least the following:

- stability, including through the contracts between the producers and buyers, transparency in the relationships between farmers and purchasers along the supply chain, and transparency in the information about participating farmers;

- a price for their products that is considered by participating farmers to be equitable and remunerative; and

- collective initiatives pursuing one or more of the United Nations Sustainable Development Goals, notably contributing to the development of rural communities, in particular through the promotion of democratically managed collective organisations of farmers.

The term ‘short supply chain’ may be used provided that consumers are able to easily identify the holdings of the participating farmers where the raw material was produced. The term is used to inform purchasers that ensure a close connection between the farmer and the final consumer of the product, with a limited number of intermediaries, and where the farmer, the intermediaries and the final consumer of the product are in geographical proximity to one another.

Contractual relations

The amended text provides for new measures such as mandatory written contracts, to support dairy producers’ incomes given the challenging conditions the sector is facing. The obligation will only apply to the following:

(a) farmers producing raw milk on their holdings or processing the raw milk produced on their holdings into milk and milk products; (b) farmers’ associations, producer organisations or associations of producer organisations processing or marketing products.

The requirement for written contracts will also apply to sectors other than the milk, milk products and sugar sector, carried out by farmers, including farmers' associations.

In respect of written offers for a contract, the Member State concerned may decide that such an offer is to be made either by the first purchasers of agricultural products or by the farmer, including a farmers’ association, or by a producer organisation or an association of producer organisations.

Member States will ensure that mediation or comparable mechanisms, including existing mechanisms, are available to the contracting parties.

Furthermore, Member States may decide that a written contract or a written offer for a contract is not required in one or more of the following cases:

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

- the total value of the delivery or deliveries agreed by the parties does not exceed a maximum limit to be determined by the Member State concerned, which is to be no higher than EUR 10 000;

- the delivery and payment of the agricultural products concerned take place simultaneously or, for justified reasons, at the latest within 3 working days;

- the delivery concerns agricultural products for which the Member State considers, after consulting the relevant representatives of farmers, or the interbranch organisations recognised for the relevant sectors, that the effects of predictability, transparency and price transmission have been achieved for those products.

Producer organisations

The regulation also strengthens the role of producer organisations (POs) in market organisation and collective bargaining. Key provisions include allowing POs to negotiate directly with buyers and introducing rules that prevent buyers from bypassing POs to contact individual producers.

Designations of meats and meat products

The amended text defines meat as the edible parts of the animals covered by the regulation and meat products as products derived from meat, to which certain substances may be added, provided that they do not replace the constituents of meat. It stipulates that, for most food products marketed in the EU, the term ‘meat’ must be reserved for products actually containing meat or derived from the meat of the animal species concerned. These terms are: beef, veal, pork, poultry, chicken, turkey, duck, goose, lamb, mutton, ovine, goat, drumstick, tenderloin, sirloin, flank, loin, ribs, shoulder, shank, chop, wing, breast, thigh, rib-eye, T-bone, rump steak, bacon, steak, and liver.

The term ‘meat’ and the aforementioned terms will not be used to designate food consisting of, isolated from or produced from cell culture or tissue culture derived from animals, plants, microorganisms, fungi or algae. They may also be used in association with a word or words to designate composite products.

The objective is to improve transparency in the internal market and to enable consumers to make informed choices.

Lastly, the regulation authorises the continued marketing of products that have been produced or imported in accordance with the rules applicable before the date on which the new rules start to apply for a maximum period of six years from the date of entry into force of this Regulation or until the date of the exhaustion of stocks, whichever is earlier.