The EU Committee on Agriculture and Rural Development proposes stronger protection for farmers against unfair trading practices by supermarkets and food processing companies.

EU rules for cross-border enforcement of unfair trading practices in the agricultural and food supply chain were approved with 44 votes in favor, one against, and no abstentions. The new law aims to improve cooperation between national authorities responsible for enforcing the ban on unfair trading practices in the EU by improving and making mandatory the exchange of information, investigations, and the imposition of sanctions.

To strengthen protection for farmers, MEPs call for Member States to intervene ex officio, curbing cross-border unfair trading practices on their own initiative, without the need for a formal complaint from the producer. This system would replicate the protection regime for Geographical Indications in the Single Market.

MEPs want to improve the proposed alert system for unfair trading practices that may be occurring in two or more countries. Contact points designated by national supervisory authorities and the Commission should create a permanent information network. Through this network, all members would receive automatic and immediate notifications about suspected unfair trading practices in other countries.

To prevent operators from circumventing the law by moving their headquarters outside the EU, MEPs want to extend the rules to protect producers affected by unfair trading practices from third-country buyers. At the same time, all buyers established outside the EU will be required to designate an "EU responsible person" before being able to purchase their agricultural and food products in the EU, according to MEPs. This person could be fined for the seller's failure to comply with the rules, MEPs propose.

MEPs want to ensure that, in cases where Member States have decided to prohibit trading practices that are more unfair than those prohibited by current EU legislation, such as the prohibition on selling below the cost of production, the competent authorities can apply, by mutual agreement, the new rules on mutual cooperation.

Rapporteur Stefano Bonaccini (S&D, Italy) stated: "Today's vote, after weeks of intense and fruitful cooperation between all political groups, represents an important step towards greater protection for small producers and a fairer and more transparent agri-food chain, free from abuse and blackmail."

"Our goal now is to complete the legislative process before the end of the year to ensure fair remuneration for farmers' work and the value of their products, meeting the expectations of millions of European citizens," the rapporteur added.

MEPs in the Agriculture Committee also decided to begin discussions with EU countries on the final form of the legislation, with plenary approval in September 2025.

The Unfair Trading Practices Directive, adopted in 2019, protects farmers who sell their products to large retailers and food processing companies from practices such as late payment for products or cancellation of orders at short notice. However, given that around 20% of agricultural and food products consumed in the EU originate in another Member State, the new regulation on cross-border cooperation between the authorities responsible for enforcing the UTP Directive seeks to improve cooperation between these authorities in cases of unfair trading practices where suppliers and buyers are located in different Member States.