The European Commission is preparing a reform of EU rules on unfair trading practices (UTPs) in the agri-food supply chain, with a public consultation due in autumn 2025 and a legislative proposal envisaged for 2026.
The initiative is intended to address a central concern raised by farm groups: transactions in which producers cannot cover their production costs. Farmer organisations have called for an explicit EU-level ban on purchases below cost.
The plan sits within Agriculture Commissioner Christophe Hansen’s wider blueprint for the sector, which signals a review of UTPs to strengthen farmers’ position in negotiations with processors and retailers. According to the Commission, the overhaul would examine options to curb purchases below production cost and tighten enforcement where supply chains span multiple member states. A statutory evaluation of the current directive is running in parallel, with the first review due by 1 November 2025.
Downstream operators have responded cautiously. EuroCommerce, the retail and wholesale lobby, argues the Commission should not pre-empt the evaluation and warns that poorly designed cross-border enforcement could fragment the single market if national rules are projected beyond borders.
Directive (EU) 2019/633 currently distinguishes between “black” and “grey” practices. Black practices are prohibited in all circumstances—examples include late payment for perishable goods, short-notice cancellations, unilateral contract changes and misuse of trade secrets. Grey practices are permitted only if clearly agreed in advance, such as the return of unsold products or supplier payments for stocking, promotion or advertising. The directive provides minimum harmonisation and protects suppliers up to a €350 million turnover threshold, allowing member states to go further.
Several national regimes already extend beyond the EU baseline. Spain prohibits purchases of agri-food products below production cost. France has tightened resale-below-cost thresholds for certain food products. Croatia has added practices to its national list, including limits that prevent sales below defined price floors for “production and market-sensitive” goods. Belgium’s Code of Economic Law contains a general ban on resale at a loss, while Belgium has also implemented sector-specific rules for the food chain.
Whether the EU should replicate such measures at Union level remains contested. At a debate of the Special Committee on Agriculture on 16 June 2025, most delegations favoured keeping the two-tier “black/grey” structure. Some member states nevertheless called for an EU-wide prohibition on selling below production cost, while others proposed a broader “general clause” to capture new, as-yet-unlisted practices. Delegations also highlighted concerns over purchasing alliances and the rising share of private-label products.
In parallel, a narrower “quick fix” is advancing. In December 2024 the Commission tabled a regulation to improve cross-border cooperation among national enforcement authorities. The Council agreed its negotiating mandate on 7 April 2025. The European Parliament’s agriculture committee adopted its position on 15 July 2025, and a plenary vote in September is expected to open inter-institutional talks. The file centres on mandatory mutual assistance, coordinated actions for widespread cases, and clearer procedures when suppliers and buyers are in different member states.
Defining and verifying “production cost” would be the central technical challenge for any EU-level ban. Costs vary by holding, region and season; data can be commercially sensitive; and rigid benchmarks risk distorting competition. Stakeholders consulted by the Commission have cited competition-law and trade-secret concerns, and differences between production stages, as practical obstacles in systems that already restrict sales below cost.
If the broader review proceeds on the indicative timetable, the Commission would consult stakeholders this autumn before drafting a proposal during 2026. Key questions include whether to codify a ban on purchases below production cost, how to define and verify cost indicators across diverse farm systems, and how to safeguard competition and consumer interests while improving farmers’ bargaining power. With national approaches diverging and cross-border trade commonplace, the consultation will test appetite for deeper harmonisation without sacrificing subsidiarity.
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