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DRAFT REPORT (COM(2024)0577 – C100209/2024 – 2024/0319(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116 as regards the strengthening of the position of farmers in the food supply chain

AGRI-PR-772032

Committee on Agriculture and Rural Development · Rapporteur: Céline Imart

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The draft report proposes amendments to the Commission's regulation on strengthening farmers' position in the food supply chain, clarifying terms like 'fair' and 'short supply chain', extending negotiation rights to non-recognised producer organisations, and adjusting thresholds. It also adds objectives for producer organisations, allows derogations from written contract obligations in certain sectors, and refines price calculation indicators to reflect production costs.

Committee position. The rapporteur proposes amendments to the Commission's proposal, clarifying definitions, extending negotiation rights, and adjusting thresholds to strengthen farmers' position.

Key points

  1. Defines 'fair' or 'equitable' terms to require stability, particularly through multi-annual contracts, and transparency in commercial relations.
  2. Restricts 'short supply chain' to products produced in the Union, with a limited number of intermediaries and geographic proximity expressed through reduced transport distance or time.
  3. Allows non-recognised producer organisations to negotiate contracts if they have applied for recognition within five years.
  4. Sets a volume threshold for associations of producer organisations at 33% of national production or 5% of EU production.
  5. Adds objectives for producer organisations including payment of additional amounts to producers for joint projects.
  6. Requires price calculation indicators to reflect true production costs, including farmer's compensation and changes in market conditions.
  7. Allows producer organisation statutes to have provisions identical to or going further than the contract terms.
  8. Permits Member States to exempt certain sectors from written contract obligations, except the milk sector, at the request of an interbranch organisation.
  9. Adds new objectives for interbranch organisations: promotion of local production, joint waste management, stable income, diversification, and rural development.
  10. Allows producers to request Commission opinions on sustainability standards' compatibility, referencing objectives (d) and (f)(e).

Who is affected

  • Farmers and producer organisations: gain clearer rules for fair terms and short supply chains, and extended negotiation rights.
  • Non-recognised producer organisations and cooperatives: can negotiate contracts if they apply for recognition within five years.
  • Member States: may exempt sectors from written contracts, except milk, and may determine price indicators.
  • Interbranch organisations: can request exemptions and provide data for price indicators.

Figures and deadlines

  • 33% of total national production or 5% of EU production as volume threshold for associations of producer organisations.
  • Five years maximum for non-recognised producer organisations to apply for recognition.

Legal basis: Article 294(2), Article 42, first subparagraph, and Article 43(2) of the Treaty on the Functioning of the European Union