Copa & Cogeca welcomed today the European Parliament’s call for legislation at EU level to tackle unfair trading practices (UTPs) in the food supply chain, saying EU solutions are necessary to address EU wide problems.
The report by MEP Edward Czesak on unfair trading practices, which underlines the need to ensure action is taken against late payments and to propose an EU-level framework to deal with unfair trading practices in the food chain, was adopted by an overwhelming majority of MEPs.
Pekka Pesonen, Secretary General of Copa and Cogeca stated: “We welcome the clear recognition by MEPs that framework legislation at EU level is vital to tackle UTPs and to ensure that European farmers and consumers can benefit from fair selling and buying conditions. We have long been calling for this. It is unacceptable that farmers’ from across Europe are being squeezed further and further by processors and retailers. The price the farmer gets often does not even cover his production costs. Below cost selling must stop”.
“We also welcome recognition by MEPs that strengthening and establishing producer organisations must go hand in hand with strengthening farmers’ bargaining power in the food chain. In this respect, we believe that prices paid to farmers must better reflect the added value generated by farmers and their agri-cooperatives and that they receive a better share of the consumer euro”, Pesonen added.
“This report recognises the weaknesses and shortcomings of the Voluntary Supply Chain Initiative (SCI). Voluntary initiatives are not sufficient to curb UTPs. This was also indicated in the Commission’s report dated 29th January which warned of a lack of governance, transparency, and lack of enforcement measures and sanctions in the SCI to tackle UTPs. There is a lack of effective deterrence against UTPs and inability to log anonymous complaints in this voluntary initiative. These are the very same reasons that led Copa and Cogeca to not join the SCI” Pesonen said.
Copa and Cogeca now expect the European Commission to take stock of this report and act accordingly looking at legislation, at EU level, to address a problem that is affecting all farmers across the EU.
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