The food supply chain is vulnerable to unfair trading practices due to stark imbalances between small and large operators. Farmers and small operators in the food supply chain often do not have sufficient bargaining power to defend against them.

The European Union therefore decided to improve the protection of farmers and small and medium sized suppliers and provide mandatory rules that outlaw certain unfair trading practices. The Directive on Unfair Trading Practices in the agricultural and food supply chain2 was adopted in April 2019. EU countries were required to transpose the Directive into national law by 1 May 2021 and apply it six months later.3

The aim of the Directive is to establish a minimum list of prohibited unfair trading practices in relations between buyers and suppliers in the agricultural and food supply chain and lays down minimum rules concerning the enforcement of those prohibitions and arrangements for coordination between enforcement authorities.

 

Briefing Note (UA version)

Briefing Note (ENG version)

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