New EU legal reforms aim to rebalance food supply chains, increase contract transparency and give farmers greater bargaining power across the EU’s agri-food sector.
The European Union has reached a political agreement on new measures aimed at strengthening the role of farmers in food supply chains, taking an important step in efforts to address long-standing imbalances between agricultural producers, processors and retailers.
Negotiators from the European Parliament and the Council reached an agreement following discussions on proposed amendments to the law governing the Common Market Organization (CMO) for agricultural products.
The changes aim to give farmers stronger bargaining power, improve transparency in commercial relationships and distribute value more evenly across the agricultural and food system.
The deal still requires formal approval by EU lawmakers, but it signals a growing momentum for reforms aimed at stabilizing farm incomes and restoring confidence across supply chains.
Agriculture and Food Secretary Christoph Hansen commented: “This agreement is an important milestone for European farmers. By strengthening their position in the food supply chain, we are translating one of their key demands into concrete action.”
“With stronger producer organizations, clearer contracting rules, and stronger protections for meat designations, this agreement will help ensure farmers’ voices are heard, they have a stronger voice in the marketplace, and they receive a fairer share of the value they produce.”
Addressing structural imbalances in food supply chains
European agriculture has faced increased economic pressure in recent years. Rising production costs, market volatility and the uneven distribution of value within food supply chains have left many farmers in precarious financial situations.
Policymakers say these challenges weaken farmers’ bargaining position when dealing with large processors, distributors and retailers. Producers often receive only a limited share of the final market value of their produce.
The European Commission insists that correcting these structural imbalances is necessary to ensure the long-term sustainability of the agricultural sector. Ensuring that farmers receive fair compensation is also considered important to maintaining food production capacity across the bloc.
The legal reforms build on commitments outlined in the European Commission’s policy program for 2024-2029, which focuses on improving farmers’ incomes and strengthening protection against unfair trade practices.
Mandating contracts and strengthening producer organizations
A central element of the agreement focuses on improving contractual arrangements between farmers and buyers.
Under the new framework, the sale of agricultural products will often require a written contract. These contracts aim to provide clearer terms on pricing, delivery terms and payment schedules, giving farmers greater predictability in their commercial relationships.
The agreement also strengthens the role of producer organizations and associations of producer organizations. By simplifying approval rules, the EU wants to make it easier for farmers to collaborate, pool resources and bargain collectively with large buyers.
Supporters of the reform argue that stronger producer organizations would help balance power within the food supply chain, especially for small-scale farmers who lack influence in individual negotiations.
New labels and market support measures
The law introduces new rules governing voluntary product descriptions such as “fair”, “impartial” or similar claims, along with references to “supply chain deficiencies”. These Terms are subject to clearer guidelines to avoid misleading marketing practices.
Another provision allows the EU to provide additional financial support to member states during periods of severe market disruption. Such interventions could contribute to price stability or support producers when agricultural markets experience sudden shocks.
The measures aim to give governments more flexibility when parts of the food supply chain face significant imbalances.
Restrictions on meat-related terms
The agreement also includes specific rules regarding the use of certain meat-related terms. Under the new regulations, names referring to cuts of meat or animal species may only be used for products derived from slaughtered animals.
This means that foods produced using cell or tissue culture techniques are not allowed to use these names. However, this restriction does not apply to product names such as hamburger or sausage, which may include meat or plant-based ingredients.
Next steps for EU agricultural policy
The interim agreement broadly reflects the proposals originally introduced by the European Commission in December 2024 and is in line with the recommendations of the EU Strategic Dialogue on the Future of Agriculture published earlier that year.
Both the European Parliament and the Council must formally approve the agreement before the measures come into force.
The practical impact of the reforms will depend on how widely voluntary measures are adopted by farmers and buyers, and how individual Member States implement available policy options.
Once fully implemented, the changes could reshape relationships across the food supply chain, and policymakers hope the reforms will give farmers a stronger and more stable position within Europe’s agricultural economy.
Source link
