In response to the recent protests by farmers, the European Union (EU) has taken a significant step by launching its observatory on the agri-food chain.
Announced by the European Commission (EC), this initiative aims to shed light on the complex dynamics of the agri-food sector, particularly focusing on price transparency and the cost structure.
This move is designed to address the grievances of farmers who feel undervalued within the current system.
Inaugural Meeting and Objectives
The first meeting of the observatory took place on Wednesday, July 17. During this meeting, the EC outlined the primary goals of the observatory: to gain a comprehensive understanding of the supply chain's functioning and to enhance transparency in critical areas such as prices, cost structures, and the distribution of margins and added value. Importantly, the observatory's operations will adhere to strict confidentiality and competition rules to ensure fairness and compliance.
Participation and Stakeholders
The observatory includes a wide range of participants, reflecting the diversity of the agri-food sector. Representatives from the national authorities of the 27 EU Member States and 48 stakeholder organizations are involved. These organizations span the entire supply chain, including farmers, input suppliers, the food industry, traders, transport, logistics, retail trade, and consumers. Additionally, the European Parliament, the European Committee of the Regions, and the European Economic and Social Committee hold observer status, ensuring broad oversight and input from various EU bodies.
Key Tasks and Future Plans
The main tasks of the observatory include exchanging information and assessing the food supply chain's current situation. By fostering dialogue among the various stakeholders, the observatory aims to identify issues and potential improvements in the agri-food chain. In the medium term, the observatory seeks to develop methodologies to evaluate and monitor the cost structure and the distribution of margins and added value throughout the chain.
During the inaugural meeting, participants reviewed an initial mapping of available data on prices, costs, and added value. This exercise provided a foundation for understanding the current state of the agri-food supply chain across the EU. Members also shared insights into the conditions within their respective countries, highlighting both common challenges and unique national circumstances.
Addressing Farmers' Concerns
The creation of the observatory was first announced in March, with the second meeting scheduled for autumn. European Commissioner for Agriculture Janusz Wojciechowski emphasized that recent months have seen a surge in concerns from European farmers. One of the primary issues is the perception that the current food supply chain does not adequately reward their efforts. This perceived imbalance has eroded trust, which the European Commission aims to rebuild through the observatory's work.
Implications for the Agri-Food Sector
The EU's initiative comes at a crucial time, with growing discontent among farmers over their compensation and the value attributed to their work. By enhancing transparency and providing a clearer understanding of the agri-food supply chain, the observatory is expected to foster a more equitable distribution of the value generated throughout the chain. This could help address farmers' concerns and contribute to a more balanced and fair agri-food sector.
In conclusion, the establishment of the EU's agri-food chain observatory represents a proactive measure to enhance transparency and fairness within the sector. By involving a wide range of stakeholders and focusing on critical issues such as prices and cost structures, the observatory aims to create a more transparent and equitable system that better rewards the efforts of all participants, particularly farmers. The success of this initiative could serve as a model for addressing similar concerns in other sectors and regions.
Source: Vinetur