The Presidency has supported by a vast majority of ministers meeting in the Agriculture Council called for action in areas ranging from the reinforcement of the agro-food industry to a better balancing of the Common Agricultural Policy (CAP) and EU competition rules.

The Council highlighted the need to improve the structure of the agro-food sector, for instance by integrating primary producers and small and medium-size processors with the other links of the food supply chain and by strengthening cooperatives and producer organisations.

At the meeting of the Agriculture and Fisheries Council, the Ministers of Agriculture approved a conclusions document on how to improve the operation of the food supply chain in the European Union. The document focuses on four priorities:

• Promoting sustainable market relations between the parties concerned.
• Increasing transparency in the food supply chain to encourage competition and improve resistance to unstable prices.
• Improve the integration and competitiveness of the agro-food chain.
• Eliminate obstacles to ending practices that lead to a fragmented domestic market.

Other actions needed include increasing transparency along the food chain, as illustrated by the European food prices monitoring tool. It is also necessary to fight unfair trading practices by putting in place stricter controls. Moreover, self-regulation between the actors of the food supply chain, such as sets of standard contracts for the agro-food industry and codes of good commercial practices for all parties concerned, should be encouraged.

An overwhelming majority of ministers also stressed that there should be a better balance between the Common Agricultural Policy (CAP) and the EU competition policy. They invited the Commission to explore the flexibility margin in the application of competition rules.

A more efficient food supply chain would benefit primary producers, processors, distributors and consumers alike. Promoting fair sharing of added value as well as market-based relationships along the chain would raise overall efficiency and bolster Europe-wide competitiveness.