European Commission seeks to bring more fairness to food supply chain

Eurofile: Move could benefit farmers and producers but would not be in place until after Brexit

The European Commission has published its plans for legislation to bring more fairness to the food supply chain.

This will not affect the UK, since it will not be in place until after Brexit, but it may put pressure on the Government to boost the powers of the Grocery Code Adjudicator.

The EU plan is to outlaw some practices widely criticised by farmers and food processors which include forced promotions and ‘golden hellos’ to buy business. Payments will have to be within 30 days, short notice contract cancellation will be banned and supermarkets will no longer be able to return fresh products to suppliers at the retail price.

These are still proposals and they will face opposition, however the farm commissioner, Phil Hogan, has underlined his determination to get the legislation in place. A coalition of more than 20 pressure groups has come together to put pressure on the European Commission to radically change livestock farming in the EU.

They have written an open letter to the presidents of the three main institutions – the European Commission, Parliament and Council, calling for changes to production, consumption and exports.

In their sights are dairy, meat and eggs. They want the EU to help drive an agenda that promotes more plant-based diets, to reduce the resources that go into producing farmed livestock.

While this is unlikely to get far as a plan, it is an indication of the pressure the industry is under from groups seeking to link livestock production to environmental damage, methane production and the health of the general population.

Meanwhile, a United Nations rapporteur on the right to food has issued a report calling for a shift in agricultural priorities from food production to “human rights and democratisation” – an ironic call when a recent report confirmed that an increasing number of people are living with food insecurity.

The EU is still trying to secure a trade deal with the Mercosur countries of South America, but talks have been delayed yet again and could eventually run into problems because Brazil, a key Mercosur country, has elections later this year.

This will be welcomed by the farming lobby, which has opposed the deal in the offing because of the damage it would cause the European beef industry.

The chairman of the European Parliament’s budget committee has said trade deals like this, which would allow the import of cheap food, make a nonsense of the CAP.

He said the EU was with one hand supporting farmers financially and with the other allowing in cheap food that would force many farmers out of business.

The European Commission wants to outlaw certain practices including forced promotions.