Amendment of the Common Markets Organisation (CMO) Regulation on rules on contracts, producer organisations and cooperation between farmers

Key points

The EESC:

• supports the European Commission’s proposal which seeks to give producers a stronger position in the agri-food chain, while recommending additional improvements;
• welcomes the requirement for written contracts for the delivery of agricultural products, which are to include objective indicators on production costs and information about market prices, and recommends that the exemption from the value threshold be set at EU level at EUR 5 000;
• recommends that each Member State establish and publish objective and transparent national and/or regional indicators on production costs and information about market prices, in consultation with all stakeholders in the value chain;
• supports the introduction of a mandatory revision clause in written contracts that could be triggered by the producer and would allow a new negotiation about prices paid to farmers in line with changes in production costs and market prices, with due regard to sustainability criteria, while proposing conditions for this negotiation;
• supports the short-term establishment of mediation mechanisms in each Member State, taking into account that such equivalent mechanisms may already exist, and believes that a mechanism for making decisions within short deadlines must be established;
• supports the proposal to allow non-recognised producer organisations to benefit from the same exceptions to the competition rules accorded to recognised ones, but suggests that this possibility should be a transitional step towards official recognition within two years;
• is in favour of establishing rules for using the terms ‘equitable’, ‘fair’ and ‘short supply chains’ and recommends that the concepts of ‘equitable’ and ‘fair’ be clarified, incorporating the remuneration of producers and ensuring a fair standard of living for the agri-food community;
• supports the Commission’s proposal to strengthen sustainability objectives in concerted practices between producers (including on working and safety conditions);
• recommends revising and updating the reference thresholds for agricultural products to bring them in line with current economic circumstances;
• proposes that ad hoc financial support be mobilised instead of the agricultural reserve to support operators in the event of serious market imbalance.