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

Tackling Unfair trading practices in the food supply chain

EESC Public Hearing, 22nd June 2016 Paulo Gouveia, Chief policy Advisor Copa and Cogeca FC(16)5738:1

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Structure of the Presentation:

• 1. An unbalanced Food Supply Chain:

causes & consequences

• 2. Recent developments in the food

supply chain

• 3. Actions needed

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• 1. An unbalanced food supply chain

Agro-food industry Farmers Retailers Consumers

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Distribution of added value in the EU food supply chain

Source: Prof. Alan Matthews

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• 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.

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• 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

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• 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].

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• 3. Actions Needed

Develop and review legislation impacting

• n 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)

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• 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

• versight

Coordinate and harmonise the approach and actions of National Competition Authorities (NCAs)

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• 3. Actions Needed

Need to achieve a Fair, functional and transparent food chain for the benefit

• f farmers and

consumers

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www.copa-cogeca.eu

Thank you!