The European Parliament has approved new measures aimed at protecting farmers across the European Union from unfair trading practices by buyers of agricultural products. The legislation was passed with 555 votes in favor, none against, and 26 abstentions.
Under the new rules, national authorities will be required to cooperate more closely to address unfair trading practices, ensuring that farmers receive fair payment for their products. The legislation targets cross-border cases where such practices harm farmers and small producers, aiming to prevent, investigate, and penalize offenders.
A key provision allows member states to intervene automatically in cross-border unfair trading practices without needing a formal complaint from producers. This system mirrors the existing protection regime for geographical indications within the single market.
The rules also extend protections to cover buyers located outside the EU. These non-EU buyers must appoint a contact person responsible for EU matters if an investigation is launched against them. This person will act as the main point of contact for enforcement authorities and must assist with investigations into alleged unfair trading practices.
Additionally, national enforcement authorities can now share information about ongoing or potential unfair trading practices using the internal market information system—an IT platform already used by public administrations across different member states. This exchange aims to deter misconduct and enable rapid responses when issues arise.
Rapporteur Stefano Bonaccini (S&D, IT) commented: “We have turned what could have been a simple administrative file into a powerful act of economic and social justice. We are thus sending a clear message: farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers.
Today, Europe is proving that it can listen and take action. We stand with those who need support the most, strengthening protections for small producers and making sure we have an agri-food supply chain that is fair, transparent, and free from exploitation.”
The legislation still requires approval from the Council before coming into effect 18 months after publication in the EU Official Journal.
These new measures build on the Unfair Trading Practices Directive adopted in 2019. That directive was designed to protect farmers from issues like late payments or sudden order cancellations by large supermarkets or food processing companies. Since around one-fifth of agricultural and food products consumed within the EU come from another member state, this regulation aims to strengthen cooperation between authorities handling cross-border cases involving suppliers and buyers in different countries.
