The European Parliament has endorsed a report proposing a series of measures in order to improve transparency in the human food supply chain in Europe. Measures such as cutting the maximum payment period to 30 days, creating an EU farm prices and margins observatory or the publication of a list with non-complying companies, would increase transparency in the food supply and make it more equitable.

In its report, the Parliament suggests Member states to put in place codes of good commercial practice, including penalties and a complaint mechanism in order to counter unfair behaviour by market players. The main objective, which is to enhance competition in the human food supply chain, would require tackling any abuse of dominant positions, unfair commercial and contractual practices and late payments, as well as to improve producers' position in the food market.

MEPs have called on the Commission to table legislative proposals to limit dominant market positions at all stages of the supply chain, and to monitor trading relations between producers and retailers by implementing an EU-wide instrument through specialised bodies in the Member States.

According to the Parliament an annual report from the top European traders, processors, wholesalers and retailers about their market shares in key food items annually would allow all market players to estimate demand and supply trends. The resolution specifically asks the Commission to monitor the food processing industry in countries where it has the widest margins in the food supply chain and to report to Parliament by the end of 2010 on buyer power abuse.

Action against abusive practices in the food supply chain

The Parliament calls for the establishment of a catalogue of abusive behaviours in the market and their express prohibition by the European Union, as well as a public list of non-compliant companies with implementation of penalties for such behaviours. Emphasis is particularly made in controlling abuses by processing industry.

To improve price transparency, Parliament also urges that the recently-approved European food price monitoring tool be made more user-friendly and broadened to cover more food products, so as to provide better comparability data.

MEPs propose to put in place the pilot project to create an EU farm prices and margins observatory, which would add its efforts to the High Level Forum for a Better Functioning Food Supply Chain, created by Commission Decision in July 2010.

The house however rejected by a single vote an amendment calling for preferential treatment for farmers' organisations and co-operatives by authorities awarding public procurement contracts in the European food supply public market.