Tackling Unfair trading practices in the food supply chain EESC - PowerPoint PPT Presentation

FC(16)5738:1 Tackling Unfair trading practices in the food supply chain EESC Public Hearing, 22 nd June 2016 Paulo Gouveia, Chief policy Advisor Copa and Cogeca

Structure of the Presentation: 1. An unbalanced Food Supply Chain: causes & consequences 2. Recent developments in the food supply chain 3. Actions needed Copa and Cogeca | The voice of European farmers and their cooperatives | 2

1. An unbalanced food supply chain Farmers Agro-food industry Retailers Consumers Copa-Cogeca | The voice of European farmers and their cooperatives | 3

Distribution of added value in the EU food supply chain Source: Prof. Alan Matthews Copa and Cogeca | The voice of European farmers and their cooperatives | 4

1. An unbalanced food supply chain The main causes: • Increasing globalisation; • Farmers are weak sellers; • Processing Consolidation; • Retail consolidation; • Ferocious competition amongst retailers; • Unfair and abusive commercial practices. Copa and Cogeca | The voice of European farmers and their cooperatives | 5

1. An unbalanced food supply chain The main consequences: • Relentless downward pressure on prices; • Farmers, in many cases, do not cover production costs; • Insufficient investment in farm business; • Farmers abandoning sector and activity; • Risk for the consumer of a reduced choice and flexibility of supply. • Distortion of competition and impacts on the functioning of the Internal Market Copa and Cogeca | The voice of European farmers and their cooperatives | 6

2. Recent developments in the food supply chain • EP Annual report on EU Competition policy (§104) • GCA report on the investigation into Tesco plc • EC’s report on unfair B2B trading practices in the food supply chain; • EC study on “Monitoring of the implementation of principles of good practice in vertical relationships in the food supply chain” by Areté srl; • EP report on “Unfair trading practices in the food supply chain” by MEP Edward Czesak [ECR, PL]. Copa and Cogeca | The voice of European farmers and their cooperatives | 7

3. Actions Needed � Develop and review legislation impacting on the functioning of the Internal Market and Competition Law � Address the “fear factor” � Develop a Directive on B2B unfair trading practices (UTPs) � Ensure the enforcement of legislation through an independent third party (e.g. Ombudsman) Copa and Cogeca | The voice of European farmers and their cooperatives | 8

3. Actions Needed � Independent enforcement: to receive anonymous complaints, initiate investigations and impose deterrent sanctions (whenever necessary) � Legislation to work alongside voluntary agreements and independent third party oversight � Coordinate and harmonise the approach and actions of National Competition Authorities (NCAs) Copa and Cogeca | The voice of European farmers and their cooperatives | 9

3. Actions Needed Need to achieve a Fair, functional and transparent food chain for the benefit of farmers and consumers Copa-Cogeca | The voice of European farmers and their cooperatives | 10

Thank you! www.copa-cogeca.eu Copa and Cogeca | The voice of European farmers and their cooperatives | 11