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MEP Kelly welcomes proposals to eliminate unfair practices in food supply chain

Published: Thu, 12 April 2018

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MEP for Ireland South and Leader of Fine Gael in the European Parliament, Seán Kelly, has welcomed proposals from EU Commissioner for Agriculture, Phil Hogan, on unfair trading practices by food buyers.

Speaking in Lyon today at a meeting of European People’s Party (EPP) leadership, the Kerry MEP noted that the proposal was timely and badly needed:

“Today’s proposal is something that I have long called for and will ensure fairness in the market and all along the food supply chain. It will ensure that our farmers are protected against unfair practices by the likes of large supermarkets, wholesalers and production companies”

Unfair trading practices are business-to-business practices that deviate from good commercial conduct and are contrary to good faith and fair dealing. Today’s proposal would ban late payments on perishable food products, last minute order cancellations, unilateral or retroactive changes to contracts, and forcing suppliers to pay for unsold products.

Other practices will only be permitted if subject to a clear up-front agreement between the parties. These practices are: a buyer returning unsold food products to a supplier, a buyer charging a supplier payment to secure or maintain a supply agreement on food products, and a supplier paying for the promotion or the marketing of food products sold by the buyer.

“This proposal is crucial to help us to ensure a well-functioning food supply chain. It is important that we stand with those that are most vulnerable in the market and protect them from having their weaker bargaining positions being taken advantage of by big companies”, noted Mr. Kelly.

“The bans on these practices are important for our producers, but I am also pleased with the emphasis that the Commission has put on enforcement in its proposal. Member States will be will need to designate a public authority to enforce the rules and to investigate unfair practices, either on its own initiative or following a complaint.

“This is an important proposal for Irish farmers as it will effectively address the dominant position of retailers and wholesalers in the food supply chain, and put strict controls in place to ensure fairness and transparency. I look forward to the upcoming debates on this as the file progresses through Parliament – this proposal is the first step, and I will work with farmers to make any needed amendments to it in the coming months”, he concluded.


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