The Committee of the Regions (CoR) says in an opinion adopted on Thursday 5 July that it believes that the proposal on tackling unfair trading practices “provides a good foundation” but that it is necessary “to go further to protect farmers more effectively” (see EUROPE 12052).
The Committee points out that farmers’ incomes are currently 40% below the average salary. The value of an agricultural product is currently shared out as follows: the farmer receives an average of 21%, the processor 28% and the distributor 51%.
“Action is needed to reverse this trend and increase the value to agriculture of household food expenditure”, states the opinion drafted by Jacques Blanc (EPP, France), Mayor of La Canourgue.
The CoR recommends broadening the scope of the proposal to cover not only SMEs and farmer suppliers but all actors in the food chain, irrespective of where they are established.
It also proposes including a prohibition in principle of unfair trading practices, which could be an answer to possible future abusive practices.
The CoR also suggests: - extending the ban on late payments to include non-perishable products; - extending the list of prohibited unfair practices to include resale at a loss; - punishing purchases below production costs; - prohibiting discriminatory electronic auctions.
It believes that, in addition to the directive, contractualisation should be made attractive for producers, by ensuring that contracts take into account agricultural production costs when setting prices and additional measures on price transparency should be introduced. (Original version in French by Lionel Changeur)