EU to Strengthen Farmers' Power with Mandatory Supply Contracts
The EU Commission is set to strengthen farmers' position in the agricultural value chain. Mandatory supply contracts, covering price, quantity, and payment terms, are to be introduced. This move follows the EU Parliament's approval of the new Common Market Order (GMO) proposal by Commissioner Christophe Hansen.
The new rules, to be negotiated starting October 14, will apply broadly across sectors like milk, grain, hops, fruit, and vegetables. However, sugar is excluded. The EU Agriculture Council and German Minister Alois Rainer will decide on the final details.
Exceptions to the contract requirement are allowed for deliveries valued below 4,000 €. While the contract management aims to promote fairness, it may also introduce bureaucracy and potentially lower farmers' predictable income.
The German dairy sector, in particular, could face financial losses of up to 1 billion euros due to the mandatory written contracts.
The Trilogue negotiations between the Council, Commission, and EU Parliament will shape the final contract requirement. Farmers and industry stakeholders await the outcome, hoping for a balance between fairness and practicality.
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