Reacting to a new EU Commission report released on Friday, Copa and Cogeca regret that the Commission did not propose new EU legislation to tackle unfair trading practices (UTPs) in the food supply chain, but we welcome the fact that weaknesses in the Supply Chain Initiative (SCI) have been recognised.
Speaking in Brussels, Copa-Cogeca Secretary-General Pekka Pesonen said “Together with MEPs, we have been calling for EU legislation to effectively curb UTPs and ensure a fair and more balanced food supply chain. This is a priority for us. We have been pushing for legislation that combined with voluntary agreements and backed up by strong, independent third party enforcement would deliver a solution that will work for farmers, processors, retailers and consumers”.
He continued: “Even if Copa and Cogeca agreed, in 2011, with the principles of good practice, we could not sign up to the voluntary Supply chain Initiative which was agreed in 2013 by processors and retailers as it does not sufficiently address anonymous complaints or provide sufficient sanctions for bad practices or have an adequate independent enforcement mechanism. In this report, the Commission recognises the weaknesses of the SCI and calls for them to be dealt with. This is welcome news. We also welcome the Commission’s indication that the SCI should grant investigatory and sanctioning powers to an independent body. This is what Copa and Cogeca have been calling for”.
“The fact that 20 Member States have or are about to introduce national legislation in this area demonstrates to us that the problem of UTPs is an EU wide problem that needs an EU wide solution. We believe ultimately that legislation is needed to provide a level playing field to minimise EU market fragmentation and distortions of competition – a major concern for farmers and agri-cooperatives. We are looking forward to discussing the changes required to the SCI in the High Level Forum for a better functioning food supply chain”, he concluded
