Brussels aims for price transparency in food chain
Photo Jasper Greek Golangco
(BRUSSELS) - After bans on unfair trading practices and better producer cooperation, the EU Commission made proposals Wednesday for greater transparency in the way prices are reported throughout the food chain.
The aim of the Commission proposal is to make available important information on how prices are determined as agri-food products move along the food supply chain.
The EU executive says buying and selling price differences can provide information about intermediary costs (such as transport, insurance, storage, etc.) between seller and buyer. Greater transparency can support better business decisions and improve trust in fair dealing between the stages in the food supply chain. Having access to timely and easily accessible information about market developments is also key to compete effectively in global markets.
"Enhancing market transparency will allow equal access to and greater clarity about price information, making our food chain fairer and better balanced," said Agriculture Commissioner Phil Hogan: "These new rules will complement the recently adopted directive banning unfair trading practices in empowering weaker and smaller actors of the food supply chain and their introduction reflects the very significant public support that there is throughout the EU to strengthen the role of farmer in the food supply chain."
While there is a large amount of information available about developments in agricultural markets (prices, volumes of production, stocks, etc.), there is almost no market information about other key markets in the agri-food supply chain, namely those that operate between farmers and consumers at the food processing and the retail level. This asymmetry of information between farmers and the other actors in the food supply chain puts farmers at a significant disadvantage in the market and erodes trust in fair dealing. This lack of information on market developments from processors and retailers has been called the 'black box' of the agri-food supply chain and today's proposal unlocks that box.
The proposed measures will cover the meat, eggs, dairy, fruit and vegetables, arable crops, sugar, and olive oil sectors. They build on existing data collection systems and procedures that are already in place and used by operators and Member States to report market information to the Commission, with a now wider scope. Each EU Member State will be responsible for the collection of price and market data.
The Commission is recommending that Member States choose the most cost-effective approach and do not target small and medium-sized enterprises to reduce the administrative burden. Member States will communicate the data to the Commission, who will in turn make the monitoring available on its agri-food data portal and EU market observatories. It is essential that the information provided by the Member States is accurate and timely.
After a 4-week public consultation period, the proposal will be adopted by the Commission and is planned to enter into force six months after its adoption.
Proposal for More Market transparency in the EU's food supply chain