Agricultural companies, traders and supermarkets can often make more agreements about the production and sale of sustainable products than they think. Cooperation between farmers and cooperation in the chain from farm to fork in the field of sustainability is a stimulus for the necessary changes in the agricultural sector, the Authority for Consumers & Markets (ACM) acknowledges.
In recent years, the regulator has received many questions from the agricultural world about what is and is not allowed. New possibilities have also arisen, including due to the arrival of new European rules. Not everyone is aware of the possibilities offered by the new rules, the ACM notes. That is why the organization has created an overview: 'Farmer cooperation guideline'.
Martijn Snoep, chairman of the ACM: "I sometimes see reluctance among supermarkets, for example, to make agreements that contribute to changes that are necessary for a sustainable agricultural sector. Collaboration in the chain and collaboration between farmers to make sustainable development possible is often not contrary to competition rules."
Farmers and gardeners can work together in different ways without breaking the rules of competition. This way they can also strengthen their negotiating position towards processors, wholesalers or supermarkets. In Europe, there are important exceptions to competition rules for agriculture, which allows for more cooperation compared to other sectors, especially in the field of sustainability.
Necessity and superior quality
Farmers or chain parties who are going to work together to achieve sustainable goals must demonstrate that the agreements are necessary to achieve the sustainable goal. Another important condition is that the collaboration leads to a higher sustainability standard than legally prescribed, such as in the areas of the environment or animal welfare. The agreements may also lead to a jointly agreed sales price or production agreements. These types of agreements can be made with the farmer throughout the chain 'from farm to fork'. In this way, farmers can be rewarded for their sustainable production.
Producers organization
The European rules make it possible for farmers without a sustainability goal to collaborate extensively in the production and sale of agricultural products. This is possible, for example, in a producer organization. This means that farmers who make the same product unite to produce and sell that product. Producer organizations already exist; there are about ten of them in horticulture. Other sectors can also use this form.
Another form of collaboration is through a trade organization. Here, participants in a chain – from producer to store – can work together. This can, for example, lead to an efficient production chain or benefits from jointly sharing knowledge about the market.
Monitoring unfair practices
The ACM pays special attention to the agricultural sector. In recent years, the regulator has closely examined the market for various agricultural products in the 'Agro-nutri monitor'. The latest monitor will be released in October. In addition, ACM provides information about the possibilities for cooperation to strengthen the negotiating position of farmers. The ACM also monitors the prohibition of unfair trading practices in the agricultural sector.