Search on site

Site map

We are on:

-->

Ukrainian Grain & Oilseed Market

Ukrainian Grain&Oilseed Market

Home > News

Farmers, fair markets and consumers: new report highlights the role of EU competition rules in agriculture

10.07.2026 07:15 "Agro Perspectiva" (Kyiv) — The European Commission published its periodic report on the application of EU competition rules in the agricultural sector. The report shows that these rules give farmers opportunities to work together, strengthen their position in the agri-food supply chain and contribute to fairer and more resilient agri-food markets, while ensuring benefits for consumers.

The report also illustrates how the current rules keep the EU agricultural sector market-oriented, with effective coordination between the Commission and the Member States’ National Competition Authorities to ensure sound and effective competition.

EU rules help farmers work together and strengthen their position

The EU legislation recognises the specific challenges faced by farmers and provide for the necessary exclusions from EU competition rules to allow them to cooperate in ways that strengthen their position in the agri-food supply chain. The rules allow producer organisations to negotiate collectively for the farmers, plan production and manage supply more effectively. Other types of cooperation between farmers (horizontal cooperation) or of farmers with other actors in the agri-food supply chain (vertical cooperation) are also framed by EU law. These exclusions from EU competition rules help farmers improve their bargaining position, manage risks and respond more effectively to market challenges. In particular, EU rules also allow producers and other operators in the agri-food supply chain to cooperate on agreements that pursue higher sustainability standards than those required by EU or national legislation.

The report finds that while these possibilities are available, their potential is not yet fully used by farmers. Greater participation in producer organisations and other forms of cooperation, including for sustainability purposes, could allow more farmers to benefit from the opportunities provided by the EU framework.

Enforcement helps protect farmers and keep markets fair

The report also underlines that enforcement of EU competition rules is essential so that farmers can operate on an equal footing.

Between July 2017 and July 2025, the Commission and national competition authorities in the EU concluded around 110 investigations in the agricultural sector. These investigations helped address concerns in the agri-food supply chain, prevent anti-competitive practices and, where necessary, required companies to change their behaviour or pay fines. Farmers were the largest source of investigations by submitting complaints to competition authorities.

Some of the most frequent cases involved agreements between buyers to coordinate prices or quantities, reducing farmers’ ability to negotiate freely and weakening their position in the market. Other frequent cases involved collusion to raise prices, such as bid-rigging practices by suppliers of dairy products and some other food products, including to the detriment of food charities. There were also national farming initiatives that were amended at the request of competition authorities to avoid protectionism through a preference for domestic products.

The Commission and national competition authorities provided also guidance to collective actions by farmers, notably on sustainability initiatives.

Through enforcement and guidance, the Commission and national competition authorities help ensure that agricultural markets remain open and competitive, allowing farmers, businesses and consumers to benefit from a well-functioning agri-food supply chain.

The Treaty on the Functioning of the European Union gives the agricultural sector a special status so that the competition rules for agricultural products reflect the sector’s specific characteristics and the objectives of the Common Agricultural Policy (CAP). Regulation (EU) No 1308/2013 which establishes a Common Organisation of the Markets (CMO) in agricultural products and is the framework for the market measures provided for under the CAP, is the main vehicle to implement the Treaty’s specificities for competition rules in agriculture. The most recent update to the CMO introduced changes related to the application of competition rules in the agricultural sector that aim to further strengthen farmers’ position in the agri-food supply chain and help restore trust between actors in the agri-food supply chain. These measures will improve farmers’ bargaining power in negotiations with processors and other actors, ensuring that the added value of products is shared more fairly across the entire agri-food supply chain.

As part of the current legal provisions, the Commission must report every seven years to the European Parliament and to the Council on the application of the competition rules in the agricultural sector in all Member States. The report covers the period from July 2017 to July 2025 and focuses on exclusions from competition rules in the CMO and on antitrust investigations.

Agro Perspectiva

< Global food safety standards body Codex agrees on new guidance on “may contain” allergen labels

All news for
10.07.2026

Brazil’s soybean crushing is forecast at 65 million tons in 2026/27 >

07.09.2026