Legislation in the making
Brussels tackles supermarket power
Brussels is committed to a fair food chain, in which the farmer's income is protected. For the first time in the history of the European Union, a bill has been submitted for this, says European Commissioner Phil Hogan in a speech about unfair commercial practices to the European Parliament.
The bill means that unfair commercial practices will be banned. It is also stipulated that supermarkets must pay suppliers of agricultural products faster. Orders may no longer be canceled at the last minute.
Supermarkets can no longer unilaterally change their contracts with this law. This means that they have fewer options to unilaterally adjust their delivery terms for perishable goods if the supplier is unable to sell the perishable goods on time.
Public Supervisor
There will also have to be a public supervisor or watchdog to monitor whether the rules are being followed. This makes it possible to complain anonymously to this watchdog. And as Hogan said, "This watchdog is getting sharp teeth". By this he meant that supervisors in the Member States are given the power to impose fines.
The bill was drawn up in response to an analysis by the Commission on the role of the farmer in the food chain. According to Hogan, the balance must return to the chain. The food chain is particularly sensitive to unfair practices, due to large differences in bargaining power between the various practices.
Farmer position strengthened
A European poll, published in February 2018, shows that 88% of respondents believe that the position of farmers in the chain should be strengthened. An even larger part of these respondents believes that the role of the farmer in the chain should play an important role in the new Joint Agricultural Policy (CAP).
The bill is unique in the history of the EU. Legislative rules have never been drawn up in this area before. Hogan: “Today we show what a Europe can do as a protector of food and agriculture”.
European law
The bill will take the form of a European law and must still be approved by the Member States and the European Parliament. Later this year, an initiative will also be launched to promote market transparency.
Phil Hogan: "Today's proposal is about fairness, about giving voice to the voiceless for those who, through no fault of their own, are victims of a weak bargaining position."
Photo: Alexandros Michailidis / Shutterstock.com
Anne-Jan Doorn
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