The EU Agri-Food Chain Observatory (AFCO) held its first meeting on Wednesday, July 17. Its goal is to better understand the functioning of the supply chain and bring increased transparency on prices, cost structures, and the distribution of margins and added value while respecting confidentiality and competition rules. The establishment of this Observatory was announced in March 2024 as part of measures to strengthen the position of farmers in the food supply chain and reinforce trust among all actors involved.
Agriculture Commissioner Janusz Wojciechowski opened the inaugural meeting, highlighting the group’s objectives and upcoming work. The Observatory’s main tasks include exchanging information, assessing the current situation in the food supply chain, and developing methodologies to monitor costs and margins distribution. During this first meeting, an initial mapping of available data on prices, costs, and added value was presented, and members shared their views on the agri-food supply chain situation in the EU and their respective countries.
The Observatory comprises representatives from the national authorities of the 27 EU countries and 48 stakeholder organizations within the agri-food supply chain, including farmers, input providers, the food industry, traders, logistics, retail, and consumers. The European Parliament, the Committee of the Regions, and the European Economic and Social Committee hold observer status. The list of AFCO members and observers is available in the Register of Commission expert groups.
Background
Strengthening the position of farmers in the food supply chain is a key objective of the Common Agricultural Policy. Several measures are in place at the EU level to ensure fairness and protect farmers against unfair trading practices. These include the Directive on Unfair Trading Practices, which protects farmers and smaller suppliers against 16 unfair practices in the food chain, and provisions in the Common Market Regulation (CMO) that support farmer cooperation and allow certain exclusions from competition rules.
In recent years, rising input costs combined with high inflation have further destabilized the distribution of added value along the chain, increasing the uncertainty faced by EU farmers. Trust and cooperation between actors in the food supply chain need to be reinforced. In March 2024, the Commission announced several short- and medium-term measures to achieve this objective, with the establishment of the Observatory being an immediate deliverable. By bringing together representatives from all sectors and Member States, the Observatory aims to build trust and establish a common understanding of the current state of the chain.
Commissioner Wojciechowski’s Statement
In recent months, farmers across Europe have raised numerous concerns about the challenges they face. One of the main issues has been dissatisfaction with the functioning of the food supply chain, with farmers feeling that their work is not sufficiently rewarded. The Commission aims to address this lack of trust by establishing the EU Agri-Food Chain Observatory. With this new Observatory, we bring operators from across the supply chain together with the Commission and public authorities. Our goals are to exchange reliable information in a trustworthy manner, deliver increased transparency on costs and margins, and share expertise to identify trading practices and contractual arrangements that may impact the chain positively or negatively. Ultimately, the Observatory aims to reinforce trust throughout the supply chain, ensuring that every actor, from farm to fork, is fairly rewarded for their work.
