CMO reform improves toolbox for farmers, further rules on price setting unnecessary – say EU retailers and wholesalers

The European Parliament plenary endorsed a reform of the Regulations on the Common Market Organisations (CMO), originally proposed by the European Commission late 2024 to strengthen the position of farmers in the chain.

“We are satisfied the Common Market Organisation promotes better organisation for the farming sector while preserving the free market orientation of our supply chains”, said Christel Delberghe, Director General of EuroCommerce – the association representing retailers and wholesalers in Europe. “New rules that interfere with price setting are unnecessary. This key principle must also be maintained in future CMO reforms already underway and in the revision of the Directive on Trading Practices in the agri-food chain.”

The CMO promotes better organisation for farmers through Producers’ Organisations and seeks to strengthen their position through written contracts, while recognising the principle of free negotiations of prices throughout the value chain.

Retailers and wholesalers support better organisation for the farming sector and already collaborate successfully with farm cooperatives and Producer Organisations.

Looking ahead, EuroCommerce asks for additional guidance to ensure new exemptions from competition rules are strictly limited and do not harm consumers. EuroCommerce is also asking the and not to reopen clauses that govern relationships in the chain.  

The Commission will revise the rules on trading practices (UTP) later this year. and improve their ability to obtain better prices from the market. The focus now should be on encouraging farmers to use the new tools offered by this CMO reform, rather than an overhaul of rules on trading practices disproportionately restricting competition, creating legal uncertainty and weakening the Single Market.