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EU publishes proposed changes to CAP

10/03/2025

François-Xavier Branthôme
Poland,
WPTC
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The European Commission has published proposed changes to CAP and unfair trading practices directive that aim to improve farmers' bargaining positions.
 
In late December 2024, The European Commission has unveiled proposals for significant changes to the Common Agricultural Policy (CAP) and the Directive on Unfair Trading Practices (UTP). The main objective is to improve the negotiating position of farmers and ensure fairer commercial practices within the food supply chain.
 
Strengthening the CAP
The proposed changes to the CAP focus on several key aspects:
  Mandatory written contracts: Contracts between farmers and buyers would become mandatory, providing greater transparency and legal certainty for farmers.
  Mediation mechanisms: The establishment of mediation mechanisms between farmers and buyers would be mandatory, promoting the resolution of disputes in an amicable and equitable manner.
  Definition of terms: Terms such as "fair", "equitable" and "short supply chains" would be clearly defined, providing greater clarity and avoiding abusive interpretations when marketing agricultural products.
  Support for producer organizations: The EU would be authorized to support producer organizations that take private initiatives to manage crises, thereby strengthening their capacity to cope with market fluctuations.
These changes aim to increase the bargaining power of producer organizations and their associations, while expanding opportunities for stakeholders to agree on sustainability initiatives.
 
Extension of the UCP Directive
The European Commission wishes to extend the application of the UTP Directive, which aims to protect farmers and small and medium-sized suppliers against unfair commercial practices by large companies. Practices prohibited by the directive include unilateral changes to the contract, the transfer of the risk of loss and deterioration to the supplier, and the refusal of a written contract by the buyer.
 
The proposed amendments introduce procedural rules on cross-border cooperation between national law enforcement authorities. This will allow these authorities to work together when unfair commercial practices have a cross-border dimension, thereby strengthening the protection of suppliers.
 
These proposals have been welcomed by some players in the agri-food sector, such as FoodDrinkEurope, a Food industry confederation in the European Union, who see them as a step towards greater fairness in commercial relations.
 
However, other players, such as Independent Retail Europe, the European association that acts as an umbrella organisation for groups of independent retailers in the food and non-food sectors, have expressed concerns about the potential impact of these changes on the single market. They fear that this could lead to legal uncertainty for cross-border contracts and harm the functioning of purchasing groups across Europe.
 
According to industry experts, the European Commission's proposals mark an important step in the effort to strengthen the position of farmers and promote fairer commercial practices within the food supply chain. If adopted, these changes could have a significant impact on the European agricultural and agri-food sector.
 
Source: foodnavigator.com