Unfair trading practices in business-to-business relationships in the food supply chain

The current position on the draft directive by the European Association of Craft, Small and Medium Sized enterprises UEAPME, is addressed to the current legislator. We welcome the document with some smaller changes and hope that it can be adopted fast. SMEs need a tangible solution to UTPs in the food sector.

FoodDrinkEurope, representing the EU food and drink industries, believes that the proposal for a Directive on Unfair Trading Practices (UTPs) has the potential to create a minimum harmonisation across the EU level.

The Central Union of Agricultural Producers and Forest Owners (MTK) welcome the Commission’s proposal for a Directive to curb UTPs in the food supply chain. MTK did join the voluntary Supply Chain Initiative (SCI) platform in Finland. MTK did also leave the voluntary system because it did not work. Purely voluntary systems do not work.

The ZDH welcomes the idea of a European legal framework for protecting SMEs from unfair trading practices. There is an urgent need to strengthen the bargaining power of crafts and craft firms vis-à-vis retailers, so that craft businesses can continue to compete on fair terms. However, the scope of the proposed Directive is too narrow and should be extended.

Filed in German · English published by the European Commission

AIM, the European Brands Association supports the European Commission in its efforts to address the imbalance in the supply chain to ensure a fairer environment for the entire chain. We believe we all have a shared responsibility for a sustainable and strong supply chain, which is critical to having a competitive EU.

Freshfel Europe, the European Fresh Produce Association, represents the fresh fruit and vegetable supply chain in the European Union and is registered in the transparency register under the reference: 1637225479-02.

Copa welcomes this Commission’s proposal for a Directive to curb UTPs in the food supply chain. Purely voluntary systems did not work and we called for legislation to address this problem. We continue to see a recurrent use of UTPs all across Europe and several Member States have introduced national legislation to curb its use. Nevertheless, we need a European solution for what is clearly a European problem.

Cogeca welcomes this Commission’s proposal for a Directive to curb UTPs in the food supply chain. Purely voluntary systems did not work and we called for legislation to address this problem. We continue to see a recurrent use of UTPs all across Europe and several Member States have introduced national legislation to curb its use. Nevertheless, we need a European solution for what is clearly a European problem.

The British Agriculture Bureau (BAB) represents the UK farming unions in Brussels and more than 75,000 farming and growing members whose businesses are the bedrock of the UK’s £108bn agri-food industry. The UK farming unions are the National Farmers’ Union of England and Wales, National Farmers’ Union Cymru (Wales), National Farmers’ Union of Scotland and Ulster Farmers’ Union.

FIAB welcomes the Proposal for a Directive is an important step forward in terms of harmonisation to avoid that different regulatory frameworks create distortions of competition. In Spain we were pioneers in regular, based on consensus of actors in the supply chain, trade relations between undertakings in this sector, with the approval of Law 12/2013 on measures to improve the functioning of the food supply chain…

Filed in Spanish · English published by the European Commission

The EU initiative is crucial due to the following facts: - To give the issue an importance and political and judicial weight by raising awareness among all partners of the food chain and national politics and administration. - To harmonise the existing national laws and close gaps in those countries where no legislation existed before.

From the point of view of the German food industry, the Commission takes into account the issue of UTPs in business-to-business relations between companies in the food supply chain. Procurement volumes, overall sales area, number of sites and presence in the marketing and a wide range of sales and trade marks in all price segments have led to a dominance of the four leading food retailers in Germany.

Filed in German · English published by the European Commission

Europatat is the European Potato Trade Association, comprising of both national associations and individual companies involved in the trade of seed, ware and early potatoes throughout Europe. Its members include a wide range of traders (including breeders, distributors, storers, packers, importers and exporters) delivering seed potatoes to farmers, as well as raw material to the food industry, packed potatoes to the…

FoodServiceEurope believes that fostering fair contractual relations amongst all actors in the supply chain is essential to provide high-quality, safe, and affordable food to consumers. Therefore, the contract catering sector supports balanced initiatives to strengthen the position of farmers and SMEs in the food supply chain.

June 2018 AREFLH Position Paper on the European Commission’s Proposal for a directive on unfair trading practices in business-to-business relationships in the food supply chain The Assembly of European Regions producing Fruits, Vegetables and Ornamental Plants’ (AREFLH) main missions are:  to represent its 21 member regions and 25 AOPs, from 7 European countries;  to defend the economic and social interests of the…

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

CLITRAVI is the European Association for the Meat Processing Industry and represents about 13,000 companies active in the production of a wide variety of meat products in the European Union. The meat processing industry in Europe is mainly composed of small and medium sized companies employing 350 000 persons with more than 80 billion € sales.

Coop de France welcomes the legislative proposal of the European Commission on 12 April on BtoB UTPs. For food products circulating within the Community market, a minimum harmonisation of rules is certainly necessary to avoid distortions of competition between Member States.

Filed in French · English published by the European Commission

Cooperativas Agro-alimentarias de España very positively appreciates the step taken by the European Commission to control and ban UTP in the EU. However, there is room for improvement in the proposed directive in the scope of application, to introduce a European concept of sales bellow costs as an unfair trade practice banned and to reinforce the role of the European Commission to control UTP on trade relations on…

Generally we welcome the proposal for a European legal framework to protect SMEs against unfair commercial practices. It is urgently necessary to strengthen the negotiating position of SMEs in the retail market so that they can continue to compete on fair terms. However, we note that the scope of the proposed directive is so narrow that it will bring little noticeable improvement to food service businesses.

Motivos para la no aplicación a los productos pesqueros congelados adquiridos por empresas de transformación de la Directiva sobre prácticas comerciales desleales en la cadena de suministro 1.- No consideración como productos perecederos frescos.

Filed in Spanish · English published by the European Commission

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

SOMO's feedback on Inception Impact Assessment (EC Initiative to improve the Food Supply Chain) Together with other NGOs in various international NGO coalitions with representation in most EU member states SOMO, the Centre for Research on Multinational Corporations, has been addressing unfair trading practices in EU food supply chains since 2009 .

EuroCommerce expresses serious concerns over some of the proposed policy measures that the Commission considers as part of an initiative to improve the food supply chain. Regulating alleged unfair trading practices (UTPs) at EU level is not the right tool to address issues related to farmers’ incomes, competitive position or ability to embrace future market challenges.

Spain maintains the position already expressed in the 6 March meeting of the Sherpa Group of the High Level Forum for a Better Functioning Food Supply Chain”, which was presented at the meeting of the Spanish model.

Filed in Spanish · English published by the European Commission

UEAPME, the European Association of Craft, Small and Medium Sized Enterprises, thanks the European Commission for the consultation on the initiative to improve the food supply chain in the framework of the inception impact assessment.

The CONFAGRI supports the attempts by the European Commission to improve the functioning of the food chain in particular as a European problem must have a European approach. In the matters set out our positions and suggestions: 1) Practices and Unfair Contract Terms Malpractice and abuse are unfortunately well known and accepted as one of the bases of imbalance in the agri-food chain.

Filed in Portuguese · English published by the European Commission

ICOS welcomes this initiative by the European Commission to improve the functioning of the food supply chain. Farmer-owned cooperatives play an important role in this supply chain- they integrate the roles of the producer, processor, marketer to add value and provide security for farmers.

UOKiK President's view on unfair trading practices issue Poland has lately adopted a piece of legislation on counteracting the unfair use of contractual advantage in the trade in agricultural and food products that entered into force on 12th July 2017. This decision was made as a result of unsuccessful attempts to regulate the matter on the trade organizations’ level.

SCHWENDERMARKT INITIATIVE — The Initiative-Schwendermarkt acknowledges the importance of producers and downstream partners in the chain. In the context of the programme for Agriculture and Rural Development is of the view that the minimum Initiative-Schwendermarkt for the whole food supply chain should be introduced to limit unfair practices. The EU regulatory framework would create a minimum requirement.

Filed in German · English published by the European Commission

Feedback welcomes the Commission’s Initiative to Improve the Food Supply Chain. Our investigations have examined the link between unfair trading practices, global food supply chains and food waste. We are also members of the Groceries Code Adjudicator Action Network, which reviews and makes recommendations on the work of the UK GCA in implementing the UK’s Groceries Code Adjudicator Act 2013.

COMP/CORE/035/17EFinal 22 August 2017 FoodDrinkEurope feedback on the Inception Impact Assessment (IIA) of the Commission initiative on the food supply chain 1. General issues Commission IIA FoodDrinkEurope feedback The IIA often refers to “small(er) operators” in FoodDrinkEurope would like to remind that the chain, linking the business’ size to its also the industry is made of small and micro bargaining power.

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

The Federal Ministry of Agriculture, Forestry, Environment and Water Management, has the honour to present the following observations: Unfair trading practices (UTPs) in 1. We agree with the options proposed under option 3 for issuing a EU framework legislation to protect vulnerable groups in the food chain operators (including farmers) concerning transactions, from agricultural products.

Filed in German · English published by the European Commission

KLJB Germany - Feedback on Inception Impact Assessment: As member organization of Fairtrade Germany, KLJB would like to highlight Fairtrade Germany comments and positions regarding the Initiative of the EU Commission: Improve Food Supply Chain.

Poland sees the importance of producers and downstream partners cooperation at every stage of the food supply chain. Poland supports these processes. Therefore would be a challenge to extend a provision in CMO regulation which applies in the sugar sector and which allows voluntary value sharing agreements negotiated by groups of agri producers. It would help them be more sustainable and competitive on food markets.

Dear Madam, Sir, Please find enclosed the contribution of the FRSEA Brittany Regional Federation of Unions of Agricultural Operators (France) to the European Commission’s consultation on the impact assessment study on the food chain. Yours sincerely, [name removed], Chair of the FRSEA Brittany.

Filed in French · English published by the European Commission

The European Public Health Alliance (EPHA) is Europe’s leading NGO alliance advocating for better health. EPHA, as member of the High Level Forum on the Better Functioning of the Food Supply Chain, DG AGRI Civil Dialogue Groups, the EU platform for action on diet, physical activity and health, and other forums welcomes the European Commission’s commitment to improve the functioning of the food supply chain.

The National Pig Association welcomes the opportunity to give feedback on the Commission’s initiative to improve the functioning of the food supply chain. We agree that consolidation within the retail and food processing sectors has resulted in an imbalance of power within the supply chain which negatively impacts primary producers.

NFU Scotland (NFUS) welcomes the opportunity to comment on the European Commission's (EC) Inception Impact Assessment on an Initiative to Improve the Food Supply Chain. As Scotland’s voice for farming, representing over 8500 members, NFUS recognises the forward thinking ambition of this initiative and are keen to support measures aimed at targeting unfairness within the supply chain which hits farmers and crofters…

Finnish Commerce Federation welcomes the opportunity to comment on the Inception Impact Assesment (IIA) on the initiative to improve the food supply chain. Our full position paper on the IIA is attached. To summarize our statement, we would like to raise the following points: We understand the difficulties farmers face and agree that farmers are crucial for the food supply chain.

Farmers Federation welcomes the European Commission’s initiative to organise a search in connection with the functioning of the Agro-Food Chain and unfair commercial practices occurring in foods. A few years ago, the Farmers’ Association organised a survey to find out whether the members’ experience with farmers and market gardeners in the functioning of the chain and the possible unfair commercial practices.

Filed in Dutch · English published by the European Commission

EUCOFEL, the European Fruit and Vegetables Trade Association, greatly appreciates all the initiatives and actions taken by the Commission towards a better functioning food supply chain (FSC) and would like to share its views on the proposals made in the Inception Impact Assessment relating to the “Initiative to improve the Food Supply Chain”.

The Confederation of Danish Enterprise does not support a common legislative framework for Unfair Trading Practices (UTPs) in the food supply chain. We believe that regulating contractual agreements between the different stakeholders in the chain will not be effective in reaching the Commissions stated goal of the legislation – helping to increase disposable farm income indirectly so as to not include actual…

FEPEX, the Spanish Federation of Associations of Producers and Exporters of Fruits, Vegetables, Flowers and Live Plants, welcomes the publication of the Inception Impact Assessment relating to the “Initiative to Improve the Food Supply Chain”. Please find below FEPEX’s preliminary comments to the options proposed in the Inception Impact Assessment.

In view of the initiative should be noted at the outset that competition works in the food supply chain. There is thus no need for regulation by the European legislator. The HDE considers therefore pursued the objective of ‘strengthening the role of producers’ for achieving is fundamentally misconceived. This unilateral Wirtschaftsstufe pursue interests contrary to the conditions of an open economy.

Filed in German · English published by the European Commission

The Austrian Chamber of Agriculture welcomes the publication of a first impact assessment on “initiative to improve the food supply chain’. EU-level specific proposals for several years, against unfair commercial practices in the food chain discussed (such as the Communication from the European Commission on tackling unfair trading practices in the business-to-business food supply chain [COM (2014) 472 of…

Filed in German · English published by the European Commission

Copa and Cogeca welcome the publication by the European Commission of the Inception Impact Assessment “Initiative to improve the food supply chain” and have been calling for tangible actions to improve the functioning of the food supply chain and, in particular, to curb unfair trading practices.

Copa and Cogeca welcome the publication by the European Commission of the Inception Impact Assessment “Initiative to improve the food supply chain” and have been calling for tangible actions to improve the functioning of the food supply chain and, in particular, to curb unfair trading practices.

Feedback of Detailhandel Nederland (Dutch retail Association) • The starting point in any value chain should be the consumer and its interests. There can be no exemption in the case of food supply chain. It is therefore regrettable that the interests of consumers are missing from the European Commission’s analysis and are not taken into account in the proposed solutions.

Please find attached the opinion of COOP DE FRANCE, on the ‘Inception Impact Assessment’ on the initiative to improve the functioning of the food supply chain for the European Commission. In the latter, we provide our analysis on the points proposed by the Commission: unfair commercial practices, market transparency and the arrangements for a better sharing of the value.

Filed in French · English published by the European Commission

AIM POSITION Consultation of the European Commission on its Inception Impact Assessment to improve the food supply chain by tackling unfair trading practices and increasing market transparency 21 AUGUST 2017 9 AVENUE DES GAULOIS – 1040 BRUSSELS TEL.: [phone removed] – FAX: [phone removed] – [email removed] EU Transparency register ID no.: 1074382679-01 1 Introduction AIM welcomes the continued commitment of the…

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

Initiative der EU-Kommission zur Verbesserung der Lebensmittel-Wertschöpfungskette Der Bundesverband der Agrargewerblichen Wirtschaft e. V. begrüßt die Möglichkeit zur „Initiative für eine Verbesserung der Lebensmittel-Wertschöpfungskette“ Stellung zu nehmen. Der private Agrarhandel in Deutschland besteht zum größten Teil aus mittelständischen, familiengeführten Unternehmen.

Filed in German · English published by the European Commission

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

A properly functioning food supply chain in the EU is central to ensuring that EU farmers receive a fair share of the final consumer price and an income comparable with other sectors. Farmers have consistently lost out – in particular due to the concentration of market power upstream and downstream and an unequal bargaining position among the various parties along the food supply chain.

The dairy sector, the milk farmers and their milk processing dairies, are in a unique and specific situation. The specificities of the dairy sector at milk supply level have proven to be essential for the dairy sector and must be respected when considering setting up new horizontal rules.

Dutch farmers' organisation LTO NEDERLAND wishes to contribute to the EU inception consultation on the food chain. Our contribution is attached. In short, LTO NEDERLAND emphasizes the importance of farmers' co-operatives to improve the position of farmers in the value chain and sustainability and innovation in general. Tackling UTPs is important, but this will not be enough to improve the farmers' income.

The NFU have evidence to show that unfair trading practices occur across all agricultural sectors, to their detriment. The key reoccurring themes that we have previously identified are: • The power imbalance within the supply chain: that of the intermediaries versus farming businesses • A lack of consumer choice, driven by the potential risk and costs passed down the supply chain to the farmer, limiting ability for…

Significant imbalances in bargaining power exist among the partners in the food supply chain. Such imbalances stimulate certain activities on the part of the stronger party within the business relationship. The problem of UTP’s has been noticed by all stakeholders involved in the food supply chain and particularly by suppliers. Various surveys show that UTPs occur relatively frequently.

Primary Food Processors (PFP) are commodity processors. Our Industries are buying from farmers/first collectors/cooperatives or traders and selling mostly in bulk form to manufacturing industries. Contracts are generally negotiated with suppliers and customers over longer-term to ensure smooth run of operations and continued supply of raw materials both upstream and downstream.

ASSESSMENT OF THE REGIONAL MINISTRY OF AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT TO THE EUROPEAN COMMISSION’S CONSULTATION ON THE INITIATIVE TO IMPROVE THE FUNCTIONING OF THE AGRI-FOOD CHAIN. It should be mentioned that the options put forward by the Commission, is less ambitious than the recommendations made by the High Level Group on the “Functioning of the chain Taske Force”.

Filed in Spanish · English published by the European Commission

Initiative to improve the food supply chain in the EU Danish Agriculture & Food Council welcomes the opportunity to provide our reaction to the European Commission’s inception impact assessment “Initiative to improve the food supply chain”.

Initiative to improve the food supply chain The Federation of Swedish Farmers (LRF) supports initiatives to improve the functioning of the food supply chain. We find the proposals from The Agricul-tural Markets Task Force useful and appreciate the Impact Assessment deliv-ered from the Commission in the end of July. A food chain that functions well and meet the demands of consumers and so-ciety must be competitive.

The European Union de minimis framework covering the whole food supply chain: this is extended to the general criteria of unfair trading practices, allowing the Member States to impose additional framework (respect for differences between Member States).

Filed in Latvian · English published by the European Commission

The European Union de minimis framework covering the whole food supply chain: this is extended to the general criteria of unfair trading practices, allowing the Member States to impose additional framework (respect for differences between Member States).

Filed in Latvian · English published by the European Commission

VPOV, the Flemish producerorganization of pig farmers, welcomes the publication by the European Commission of an Inception Impact Assessment (IIA) to 'Improve the Functioning of the Food Supply Chain' (FSC). Attached a PDF-document with several technical comments on behalf of VPOV. Feedback 1 The statement that “Price transparency is high concerning producers’ prices” needs to be nuanced.

INCEPTION IMPACT ASSESSMENT-INITIATIVE TO IMPROVE THE FOOD SUPPLY CHAIN Macra na Feirme as the voice of young Irish farmers welcomes the opportunity to engage with the European Commission Inception Impact Assessment aimed at improving the food supply chain. Farmers across all MS welcome steps toward improving their stance in the food supply chain. A farmer, regardless of age or nationality, is a price taker.

The Irish Farmers’ Association (IFA) welcomes the publication by the European Commission of an Inception Impact Assessment (IIA) to 'Improve the Functioning of the Food Supply Chain' (FSC) IFA has campaigned for years both at home and in Europe, for a rebalancing of power in the FSC, to deliver a viable price for farmers, and a return on their work and investment.

- Unfair Trading Practices (UTP) UTP should be eliminated because they generate unnecessary costs, represent an attack on the profitability of family farms and bring distortions to competition. They do not bring benefits to the consumers and cause additional costs for operators. There should be a broad and binding regulation and a single legal approach for the whole EU.

With regard to unfair trading practices, FAIRTRADE Germany is concerned about the impact on social and working conditions of smallholder farmers and employment of workers in the agriculture and food processing sectors, in particular in developing countries which export their products into EU countries.

Unfair Trading Practices In order to tackle UTP we propose to extend the model the Spanish food chain law at European level. The Spanish law covers all the aims to face this matter: • A Regulatory approach mandated and controlled by an independent public agency (AICA) to monitor compliance. This agency would have sanctioning and watchin capacity.

Filed in Spanish · English published by the European Commission

IndustriAll European trade union is the federation of trade unions in the non-food industrial value chains, and represents 7 M members from 190 organisations in 38 countries in Europe (including all EU 28 Member States). We are very aware of the prevalence of Unfair Trade Practices (UTPs) along industrial value chains, and witness them directly in many industrial sectors other than the agro-food sector.

CLITRAVI welcomes the SCI currently developed at EU level. However we are convinced that all alone it will not solve the problem of UTPs in Europe. Generally speaking Self Regulatory frameworks cannot be the sole solution as they failed almost everywhere because as given the ratios of forces on the market it is improbable that such an issue will find a suitable solution through free negotiations between the parties.

A l’attention de la Commission européenne FNSEA Ref. Ares(2017)3838984 - 31/07/2017 31 juillet 2017 Réaction de la FNSEA à l’étude d’impact initiale sur la chaîne alimentaire Alors que les recommandations issues des travaux de la task force « marchés agricoles » vont réellement dans le bon sens, à savoir celui d’améliorer la position des agriculteurs dans la chaîne alimentaire, les attentes du côté des agriculteurs…

Filed in French · English published by the European Commission

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

With regard to unfair trading practices, EFFAT is particularly concerned about the impact of these practices- which increase risk and uncertainty- on employment, social and working conditions of workers in the agriculture and food and drink manufacturing and processing sectors.

XV EAAE Congress 2017 Parma, August 28th - September 1st 2017 An Academic Perspective On The Agricultural Task Force Report Chair(s): Pennings, Joost M.E. (Wageningen University), Trujillo Barrera, Andres (Wageningen University) Discussant(s): Goldsmith, Peter D.

I am concerned that the resolution mechanism of the Supply Chain Initiative (SCI) is presented in this initiative as a good tool at the service of the weak parties suffering from unfair trading practices to claim justice. The SCI counts with two options of dispute resolutions: individual disputes and aggregated disputes.