News in Brief:
– An EU Commission report reveals alarming lack of awareness among farmers regarding unfair trading practices, with only 38% acknowledging EU rules on UTPs.
– Fear of retaliation and misconceptions hinder reporting, while cross-border enforcement struggles, prompting the Commission to propose new rules to address systemic challenges.
In a startling revelation, a recent report by the European Commission has uncovered that awareness among farmers and agri-food operators regarding unfair trading practices (UTPs) remains alarmingly low.
Despite the implementation of the directive on UTPs across all EU member states since mid-2021, the report highlights significant gaps in understanding and enforcement, with only 38% of respondents acknowledging the existence of EU rules on UTPs.
Among the key findings, it was discovered that fear of retaliation from buyers deterred 30% of respondents from reporting instances of UTPs they encountered. Additionally, 23% refrained from reporting due to the belief that such practices were commonplace within the sector, while 17% lacked confidence in the effectiveness of national enforcement authorities.
Despite efforts to streamline enforcement through the UTP Enforcement Network, the report underscores persistent challenges in cross-border implementation. The Commission has pledged to address these obstacles with proposed new rules aimed at bolstering cross-border enforcement against UTPs.
The directive on unfair trading practices prohibits a range of exploitative practices in the agri-food supply chain, from delayed payments to unilateral contract changes. While a majority of member states have adopted enhanced protective measures, enforcement remains a pressing issue.
Of particular concern is the impact on local farmers, with late payments for perishable goods being the most prevalent UTP detected. This not only affects farmers’ livelihoods but also disrupts the stability of the entire supply chain.
The Commission asserts that this report will inform the evaluation of the UTP directive’s implementation, scheduled for 2025. Depending on the evaluation’s findings, legislative proposals may follow to address the systemic challenges identified.
