News in Brief:
– The European Commission has launched an agri-food chain observatory to enhance transparency in production costs and trading practices, aiming to empower local farmers.
– It will develop methodologies for cost assessment and address trading practices impacting the agricultural sector to foster fairness and resilience.
In a bid to fortify the European Union’s agricultural sector and foster trust among its stakeholders, the European Commission has initiated the establishment of the EU agri-food chain observatory (AFCO). This endeavor, announced in mid-March, aims to scrutinise production costs, margins, and trading practices within the food supply chain, with a keen eye on empowering local farmers.
The primary objective of the observatory is to enhance transparency concerning prices, cost structures, and distribution of margins along the supply chain. By fostering transparency, it seeks to ensure equitable compensation for all contributors within the agricultural and food sector, including local farmers who often face challenges in navigating complex market dynamics.
Stakeholder collaboration
The Observatory is set to comprise up to 80 members, encompassing national authorities overseeing agriculture, fisheries, and aquaculture, as well as representatives from various stages of the food chain. This inclusive approach underscores the importance of collaboration among stakeholders to address the multifaceted challenges confronting the agricultural sector.
AFCO aims to develop methodologies for assessing and monitoring cost structures and margin distribution within the food supply chain. By expanding the existing agri-food data portal to include new indicators, it will provide valuable insights accessible to all online, including data pertinent to local farmers.
Members of AFCO will also exchange information on trading practices impacting the efficiency of the supply chain. Through the sharing of case studies and insights, it endeavours to identify and address practices that may hinder the smooth functioning of the agricultural market, particularly for small-scale farmers.
Organisations interested in participating in AFCO are encouraged to apply before the deadline on 13 May 2024. Applicants must be registered in the Transparency Register to be eligible. The Observatory is slated to convene its inaugural meeting in July 2024, chaired by the Directorate General of Agriculture of the European Commission. Click here for more info.
