On 12 February, the European Parliament adopted new measures to strengthen the protection of farmers against unfair trading practices in the agri-food supply chain. The legislation, approved by 555 votes in favour, none against and 26 abstentions, enhances cross-border enforcement and reinforces safeguards for agricultural producers across the European Union.
The new rules require national authorities to cooperate more closely to prevent, investigate and sanction unfair trading practices, particularly in cross-border situations. The objective is to ensure that farmers and small agricultural producers receive fair remuneration for their work and are shielded from abusive conduct by larger buyers.
Automatic Intervention in Cross-Border Cases
A central feature of the legislation is the ability of member states to act on their own initiative to stop cross-border unfair trading practices, without requiring a formal complaint from a producer. This mechanism is intended to strengthen enforcement and mirrors the protection regime applicable to geographical indications within the Single Market.
Addressing Conduct by Non-EU Buyers
To prevent circumvention of EU rules, the regulation extends protections to situations involving buyers located outside the EU. Non-EU buyers will be required to designate a contact person within the EU responsible for cooperating with enforcement authorities in the event of an investigation. This contact point must facilitate inquiries into alleged unfair trading practices.
Enhanced Cross-Border Cooperation
The regulation also provides for improved information exchange between national enforcement authorities through the EU’s Internal Market Information System. By enabling authorities to notify each other of suspected or imminent unfair trading practices, the system is designed to deter misconduct and allow for rapid, coordinated intervention across member states.
Political Message
Rapporteur Stefano Bonaccini (S&D, Italy) described the legislation as a significant step toward economic and social fairness. “We have turned what could have been a simple administrative file into a powerful act of economic and social justice,” he stated, adding that the new framework sends “a clear message: farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers.”
He further emphasized that the measures strengthen protections for small producers and promote a fairer and more transparent agri-food supply chain.
Legislative Context and Next Steps
The regulation builds upon Directive (EU) 2019/633 on unfair trading practices, adopted in 2019, which prohibits practices such as late payments and short-notice order cancellations in transactions between farmers and large retailers or food processors. Given that approximately 20% of agricultural and food products consumed in the EU originate from another member state, the new framework seeks to address enforcement gaps in cross-border cases.
The legislation now requires formal approval by the Council of the European Union. It will apply 18 months after publication in the Official Journal of the European Union.