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European Commission regulates unfair practice in the food supply chain
18 August 2014
The European
Commission adopted a Communication in which it encourages Member States to
enhance the protection of small food producers against unfair trading practices
(UTPs) of stronger trading partners.
The main problem is situated in the
different level of bargaining power that the actors of the food supply chain
have, when there is an intensification of the market. Although the differences
are legit and common practice it can lead to UTPs including: the rejection of
drafting contracts, terminating commercial contracts and orders with the
intention to gain unfair advantages, unilateral changes of the cost or price of
product or services and bringing risk to the contracting party by unfair
transfers. The Communication therefore supports measures such as the Supply
Chain Initiative, launched by 7 EU level associations, that aims to increase
the fairness between players of the food supply chain, the establishment of
EU-wide standards and an active implementation of standards at a national
level.
different level of bargaining power that the actors of the food supply chain
have, when there is an intensification of the market. Although the differences
are legit and common practice it can lead to UTPs including: the rejection of
drafting contracts, terminating commercial contracts and orders with the
intention to gain unfair advantages, unilateral changes of the cost or price of
product or services and bringing risk to the contracting party by unfair
transfers. The Communication therefore supports measures such as the Supply
Chain Initiative, launched by 7 EU level associations, that aims to increase
the fairness between players of the food supply chain, the establishment of
EU-wide standards and an active implementation of standards at a national
level.
