Will launch a fight against unfair market practices in food supply chains

European Parliament (EP) Agriculture and rural development The committee has issued a statement on launching the fight against unfair market practices food supply chains. MEPs intend to make a series of amendments to European Union (EU) legislation that provides for a fair and equitable food supply chain. A new law that will limit unfair market practices will also come into force in Latvia next year.

More active action is supported by the European farmers' organization COPA-COGECA, which emphasizes that the existing voluntary fair trade initiative is not sufficient because it has not been able to achieve a response to complaints and lacks a preventive sanction mechanism.

For many years, unfair product procurement conditions and unfair retail practices (URP) have also caused problems for Latvian farmers and food consumers. In order to improve the trade situation, the “Unfair Retail Practices Prohibition Law” will come into force in Latvia on January 1. Deputy Chairperson of the Farmers' Parliament Maira Dzelzkalēja believes that the fight against unfair market practices is only to be welcomed. M. Dzelzkalēja: “I view the changes in EU legislation positively, as this will promote a free and fair trading platform. In Latvia, this will force companies that have not yet voluntarily implemented this practice to adhere to fair business practices. Currently, a large part of the profit remains in the sales networks, but this happens at the expense of other parties involved. Currently, farmers have no guarantee of regular deliveries, adequate sales prices are not offered, and payment terms are not fair – especially for fresh food. There are also certain places where, for an additional fee, it is possible to highlight a product on sale, choose the most advantageous shelves and product placement. All of the above are unfair conditions that hinder the operation of a quality food retail chain.”

In order for the implementation of the legislation to be successful, the Competition Council and the Ministry of Economics are currently working on guidelines for the implementation of the law, which provide for the principles of operation and application of the law. The Farmers' Council calls on farmers to familiarize themselves with the provisions of the law, as well as to carefully review any new or concluded contract and ensure its compliance with the principles of fair trade.

The Law “On the Prohibition of Unfair Retail Practices” will come into force on January 1, 2016. You can read more about the law here: http://likumi.lv/ta/id/274415-negodigas-mazumtirdzniecibas-prakses-aizlieguma-likums