At a hearing on the work of the agricultural markets task force in Brussels on Monday 9 January, MEPs, experts and farmers’ representatives all backed EU legislation to address unfair business practices.
Agriculture Commissioner Phil Hogan began by saying that he hoped 2017 would be better than last year for farmers as prices are rising, particularly in the milk and dairy sector. “We must remain vigilant: the recovery is still fragile”, he warned.
“All the signs are pointing in the same direction”, the commissioner noted with regard to the call from MEPs, members of the task force, EU agriculture ministers and stakeholders for EU legislation to tackle certain unfair business practices (UBPs) (see EUROPE 11691).
Hogan confirmed the Commission’s intention in 2017 to bring forward a proposal on this issue. The Commission wants to become involved as, it says, there cannot be unfair business practices in the food chain.
Agricultural markets task force president Cees P. Veerman could not attend the hearing as he was indisposed. Another member, therefore, delivered the task force’s conclusions (see EUROPE 11667) which confirm the progress noted in the milk and meat sectors. The task force representative stressed the need to increase transparency in the market.
Making provision for sanctions in the event of UBPs. To address UBPs, a legal framework should be established by the Commission in order to “dispel the fears of market players”. The task force representative stressed that the objective was to prevent a fresh product being bought on day 5 but paid for only on day 90. He suggested that sanctions will have to be considered.
Futures markets. The task force suggests that a mediator be put in place and that voluntary initiatives are not enough. Futures markets could develop other than in the cereals sector (meat, milk) but it will take six or seven years to see progress, the task force representative indicated.
Martin Merrild, the president of Copa (EU agri-cooperatives) was happy with the task force’s conclusions. Competition law should be adapted to ensure farmers’ legal security, he said. In addition, UBPs must be tackled by means of European legislation, while fully respecting national provisions, Merrild said. He felt, too, that written contracts should be made compulsory and more should be done on monitoring prices.
Josef Plank, Secretary General of the Austrian Chamber of Agriculture, argued for better organisation at producer level and for European rules on tackling UBPs. He also called for new risk management tools. He criticised the Commission for wanting to go back on biofuels (see EUROPE 11680).
Compulsory price reporting. Meurig Raymond, President of the National Farmers Union UK, called for strong initiatives to address the problems facing farmers within the food chain. In particular, he welcomed the task force’s support for compulsory price reporting and futures markets. Compulsory reporting of prices could make the difference on price transparency, according to Raymond, who made no mention of UBPs.
Joost M.E. Pennings, Professor in Finance and Marketing at Maastricht University, developed the issues of risk management (which should be at farm-level) and futures markets (price transparency).
MEPs Michel Dantin (EPP, France) and Clara Eugenia Aguilera Garcia (S&D, Spain) welcomed the task force’s conclusions on competition law, price transparency and tackling UBPs.
Jan Huitema (ALDE, Netherlands) stated that EU countries do not make sufficient use of second pillar (rural development) measures in risk management. Matt Carthy (GUE/NGL, Ireland) laid great emphasis on price volatility and Martin Häusling (Greens/EFA, Germany) underlined the need to match supply to demand by reducing the amounts produced in order to achieve the highest prices. (Original version in French by Lionel Changeur)