Commission proposes measures to boost farmers leverage in food supply chain

The EU executive unveiled measures on Tuesday to strengthen farmers’ bargaining power along the food supply chain, seeking to even out the bargaining power between farmers and large purchasers.

The Commission’s initiative is part of a broader effort to ensure farmers receive fair compensation and are no longer forced to sell products below production costs.

“Farmers need to be in a stronger bargaining position towards the price makers. Your hard work deserves to be rewarded,” European Commission President Ursula von der Leyen said in a video message.

The proposals reflect recommendations from the Strategic Dialogue on the Future of EU Agriculture called by von der Leyen to address concerns raised during recent farmer protests.

The proposed measures include mandatory written contracts, with which buyers are required to clearly outline terms such as price, quantity, and delivery timelines, reflecting market conditions and cost fluctuations.

“If a farmer has a written contract, he knows exactly what can be expected,” said EU agriculture Commissioner Christophe Hansen.

The Luxembourgish said this new requirement won’t add unnecessary bureaucracy to already burdened farmers.

“It does not have to be a ten-page contract. But you have your written proof that you agreed on a time, on a price, and on a quantity,” he explained.

The new rules aim to empower farmers by encouraging them to join producer organisations, strengthening their negotiating power with clients who use their products.

Additionally, member states will be required to establish mandatory mediation mechanisms to resolve disputes between farmers and buyers.

The package also introduces a regulation to enhance enforcement of the Unfair Trading Practices (UTPs) Directive—adopted five years ago, but that remains largely unimplemented.

While it stops short of a full revision of the framework—a key demand of French farmers during recent protests—the measures provide clarifications, particularly for cross-border enforcement.

The UTP framework establishes a minimum level of protection, listing 16 prohibited unfair practices at the EU level. Some EU member states have enacted their own, stricter legislation, often covering a broader range of unfair practices.

The Commission’s objective is to ensure consistent implementation across the EU, preventing companies from exploiting regulatory gaps by shifting operations to member states with weaker rules.

These proposed tweaks will now proceed to discussions in the European Parliament and the EU Council for formal approval.