In a recent development the European Commission has published proposals which if enacted will focus on the agri-food supply chain and separately, will enhance cross-border enforcement against unfair trading practices (the “Proposals”).  

The Proposals by the European Commission include amendments to the various Regulations which deal with the common market organisation of agricultural products (the “CMO Regulations”) as well as a new Regulation on cross-border enforcement against unfair trading practices. 

Background 

As part of an effort to revise and improve the Common Agricultural Policy, the European Commission held a Strategic Dialogue on the future of EU agriculture in January 2024. This initiative invited important stakeholders from the European agri-food sectors, civil society, academia, and rural communities to assess challenges and opportunities as well as formulating ideas for policies covering agriculture and food in the EU.  

Following the publication of a report in December 2024 summarising the key conclusions of the Strategic Dialogue, the European Commission has now moved to implement some of the ideas by way of the Proposals.  

CMO Regulations Amendments Currently, the CMO Regulations contain rules for establishing a common organisation of the markets for agricultural products, by creating a single market for agricultural products, clarifying rules for the internal market, setting out rules for marketing of agricultural products and regulating trade with other non-EU countries. Two of the key changes proposed are set out below: 

Contracts 

In its proposed Regulation to amend the CMO Regulations, the European Commission has put forward rules around contracts between farmers and buyers, such as an obligation that contracts between farmers and buyers must be in writing, as well as certain terms such as price, quantity or delivery timelines being clearly defined and outlined in such contracts. Furthermore, long-term contracts for over six months should include revision provisions for farmers where the price agreed would no longer cover the production cost. Lastly, contracts must include a mandatory mediation mechanism between farmers and buyers.   

Producer Organisations 

The Proposals also contain changes to rules surrounding producer organisations. Currently, the CMO Regulations contain specific reporting, production and marketing requirements with which producer organisations must comply. The European Commission is now proposing mechanisms to simplify their legal recognition, their scope of permitted activities and their ability to obtain funding from Member States. For example, through a single request, a producer organisation would be able to cover multiple sectors and products, therefore streamlining the application process and enhancing their scope.  

Cross-border enforcement against unfair trading practices  

Simultaneously, the European Commission is proposing a new Regulation on cooperation among enforcement authorities responsible for the enforcement of the Unfair Trading Practices Directive 2019/633 (the “UTP Directive”). The UTP Directive classifies certain practices as unfair, such as short-notice cancellations of perishable agri-goods or payments later than 30 days for perishable goods. As part of the transposition of the UTP Directive, Member States had to establish designated enforcement authorities to enforce the rules and obligations under the legislation. In Ireland, this function is carried out by An Rialálaí Agraibhia (the “Agri-Food Regulator”), pursuant to the Agriculture and Food Supply Chain Act 2023. We have written more, in a separate piece, in terms of compliance reporting to the Agri-Food Regulator  

Should this proposed legislation be implemented, enforcement authorities will be able to request information from another Member State’s enforcement authority on whether an unfair trading practice has occurred. Furthermore, enforcement authorities could launch coordinated actions in cases of cross-border unfair trading practices.  

Next Steps  

These Proposals by the European Commission will have to go through the EU legislative process, where they will be considered by the European Parliament and Council, and may undergo certain amendments. Poland currently holds the Presidency of the European Council and has identified competitive and resilient agriculture as one of its priorities. The European Commission also published a Vision for Agriculture and Food on 19 February. Therefore, these Proposals may be considered by European lawmakers with a particular level of focus in 2025. 

For more information, please contact our Food and Agri Group or Competition and Regulated Markets Group.