Parliament and Council negotiators have reached an informal agreement on new measures aimed at strengthening the contractual position of farmers within the food supply chain. The goal is to ensure that the final prices of food products more accurately reflect production costs, which directly impact farmers’ income.
Under the agreement, member states will be required to establish and publish online indicators that serve as benchmarks in contractual arrangements. This measure is intended to bring greater transparency and fairness to pricing structures.
The deal also includes steps to reinforce the role of producer organisations (POs) in market organisation and collective bargaining. POs would be able to engage directly with buyers, while rules will be put in place to prevent buyers from contacting individual producers directly.
In terms of labelling and marketing, the provisional agreement clarifies how terms such as “fair” or “equitable” can be used for agricultural products. Criteria for these labels include a product’s contribution to rural community development and the promotion of farmer organisations.
A definition of meat has been introduced in the agreed text as “edible parts of animals.” Names like steak and liver are reserved exclusively for products containing meat, explicitly excluding lab-grown alternatives. The term “short supply chain” may only be used for goods produced within the EU with limited intermediaries or those handled over short distances or travel times.
To support dairy producers facing challenging conditions, mandatory written contracts are set to be introduced, including opt outs for price indicators and revision clauses.
Rapporteur Céline Imart (EPP, FR) commented: “The agreement reached today constitutes a major victory for our farmers. Secured contracts will guarantee them a fair place in the value chain, and the requirement for a mediation mechanism will safeguard their income in the event of a dispute with their primary buyer.
Granting unrecognised producer organisations an exemption from competition law will also enable farmers to better organize themselves, strengthen their weight within the value chain, and protect their income.
With regard to the protection of the designation ‘meat’, this agreement represents an undeniable success for our livestock farmers. By reserving the use of the terms ‘steak’ and ‘liver’ for products from our livestock farmers, and by committing the co-legislators to extend the list during negotiations within the framework of the reform of the Common Agricultural Policy, Parliament has taken a decisive step forward. The trilogue agreement reached today recognises the value of livestock farmers’ work and protects their products, fruits of unique know-how, against a form of unfair competition.
Moreover, the explicit inclusion in the text of the prohibition on using the designation ‘meat’ for any laboratory-grown or cell-based product constitutes a decisive step forward for our farmers and for the preservation of the agricultural and food heritage that we defend.”
Before entering into force, this provisional agreement must receive formal approval from both Parliament and Council.
The Commission had proposed these changes in December 2024 as part of efforts to address challenges faced by EU farmers. The proposal aims to enhance contract provisions involving farmers, boost bargaining power for producer organisations, simplify recognition procedures, and encourage voluntary schemes supporting social sustainability initiatives benefiting farmers. It is also linked to new regulations on cross-border cooperation concerning enforcement against unfair trading practices.
