New EU legislative changes aim to rebalance the food supply chain, improve transparency in contracts, and give farmers stronger negotiating power across the EU agri-food sector.
The European Union has reached a political agreement on new measures designed to reinforce the role of farmers in the food supply chain, marking a significant step in efforts to address long-standing imbalances between agricultural producers, processors, and retailers.
Negotiators from the European Parliament and the Council reached a deal following discussions on proposed amendments to legislation governing the common market organisation (CMO) for agricultural products.
The changes aim to give farmers stronger bargaining power, improve transparency in commercial relationships, and distribute value more evenly throughout the agri-food system.
The agreement still requires formal approval by EU lawmakers but signals growing momentum behind reforms intended to stabilise agricultural incomes and restore trust across the supply chain.
Christophe Hansen, Commissioner for Agriculture and Food, commented: “This agreement marks an important milestone for Europe’s farmers. We are turning one of their key demands into concrete action by strengthening their position in the food supply chain.
“With stronger producer organisations, clearer contractual rules and better protection of meat designations, this agreement helps ensure that farmers are heard and have a stronger voice in the market and receive a fairer share of the value they create.”
Addressing structural imbalances in the food supply chain
European agriculture has been facing increasing economic pressure in recent years. Rising production costs, volatile markets, and uneven distribution of value within the food supply chain have left many farmers operating in uncertain financial conditions.
Policymakers say these challenges have weakened the negotiating position of farmers when dealing with large processors, distributors, and retailers. In many cases, producers receive only a limited share of the final market value of agricultural products.
The European Commission has argued that correcting these structural imbalances is necessary to ensure long-term sustainability for the agricultural sector. Ensuring that farmers receive fair compensation is also considered critical for maintaining food production capacity across the bloc.
The legislative changes follow commitments outlined in the Commission’s policy programme for 2024–2029, which emphasises improving farmers’ incomes and strengthening protections against unfair trading practices.
Mandatory contracts and stronger producer organisations
A central element of the agreement focuses on improving contractual arrangements between farmers and buyers.
Under the new framework, written contracts will be required in many cases when agricultural products are sold. These contracts are intended to provide clearer terms on pricing, delivery conditions, and payment timelines, giving farmers greater predictability in their commercial relationships.
The agreement also strengthens the role of producer organisations and associations of producer organisations. By simplifying rules for their recognition, the EU hopes to make it easier for farmers to collaborate, pool resources, and negotiate collectively with larger buyers.
Supporters of the reform say stronger producer groups can help balance power within the food supply chain, particularly for smaller farmers who often lack leverage when negotiating individually.
New labels and market support measures
The legislation introduces new rules governing voluntary product descriptions such as ‘fair’, ‘equitable’, or similar claims, along with references to ‘short supply chains’. These terms will now be subject to clearer guidelines to avoid misleading marketing practices.
Another provision allows the EU to provide additional financial support to member states during periods of severe market disruption. Such interventions could help stabilise prices or assist producers when agricultural markets experience sudden shocks.
The measures are designed to give governments greater flexibility to respond when parts of the food supply chain face significant imbalances.
Restrictions on meat-related terminology
The agreement also includes specific rules on the use of certain meat-related terms. Under the new provisions, names referring to meat cuts or animal species will be reserved exclusively for products derived from slaughtered animals.
This means foods produced using cell or tissue culture technologies will not be permitted to use those designations. However, the restrictions will not apply to product names such as burgers or sausages that may contain either meat or plant-based ingredients.
Next steps for EU agriculture policy
The provisional deal broadly reflects proposals originally introduced by the European Commission in December 2024 and aligns with recommendations from the Strategic Dialogue on the Future of EU Agriculture published earlier the same year.
Before the measures take effect, both the European Parliament and the Council must formally endorse the agreement.
The practical impact of the reforms will depend on how widely voluntary measures are adopted by farmers and buyers, as well as how individual member states implement the available policy options.
If fully implemented, the changes could reshape relationships across the food supply chain, with policymakers hoping the reforms will give farmers a stronger and more stable position within Europe’s agricultural economy.