Cabinet wants more market power for farmers

The cabinet is taking measures to strengthen the market position of farmers. To achieve this, Minister Carola Schouten (Agriculture, Nature and Food Quality) and State Secretary Mona Keijzer (Economic Affairs and Climate) are introducing a ban on a number of unfair trade practices.

The cabinet wants to give farmers more room to join forces. In addition, previously announced that there will be a hotline where farmers can report suspected abuses. The government has also announced that ACM will periodically investigate pricing and possible problems in the sector.

This became known after the council of ministers has agreed to a total package of measures that should lead to farmers gaining a stronger position in the chain. The Council of Ministers also agreed that farmers should be rewarded if they make extra efforts in the field of nature, the environment, biodiversity and animal welfare.

Research by WUR
Research by Wageningen Economic Research (WUR) has shown that 10% to 20% of farmers have to deal with trade practices that they perceive as unfair. This includes canceling an order with perishable products (shortly in advance) or unilaterally and retroactively changing contracts.

The new ban on unfair commercial practices should give them the opportunity to go to court. "However, the balance of power in the chain and the relationship of dependence can make producers reluctant to use this option. That is why ACM will also monitor compliance with the law," the ministry said.

Supermarket versus farmer
The cabinet also wants to provide more clarity about existing and new legal options for cooperation and making mutual agreements between the farmer and the supermarket. "Joining forces will improve the position of agricultural entrepreneurs in the chain and positively influence income," the cabinet said in a press release.

The cabinet will also provide scope for joint initiatives by farmers in the field of nature, the environment, biodiversity and animal welfare. And to gain more insight into the functioning of the market, ACM will develop an 'agro-nutrition chain monitor', which will investigate price formation and relationships within the sector.

Read the letter from Minister Schouten to parliament here.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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