The European Competition Network, a division of the European Commission, has released a report analysing activities within the food sector in which it highlights the value of farming cooperatives in current food supply chains. The report, released on Thursday (24th May), calls for the strengthening of farmers and agri-cooperatives’ position within supply chain.

The report’s findings have been welcomed by European farming union Copa-Cogeca. The union has dubbed 2012 ‘year of the cooperative.’ The union welcomed the Network’s findings that small, fragmented farms impact negatively on the growth of the agri-food sector, whereas effective cooperatives strengthen farmers’ position in the supply chain.  

Copa Cogeca Secretary-General Pekka Pesonen also welcomed the report’s authors’ recommendation to consolidate the position of cooperatives within the supply chain. He said “This could be achieved by the creation of cooperatives and other forms of cooperation amongst producers. This would strengthen farmers’ bargaining position in the food chain, which is crucial given that they are up against the huge buying power of a handful of retailers.”

The union has called for an end to unfair commercial practices and called for a pan-European watchdog or an EU directive to ensure that unscrupulous practices by transnational players can be countered across national borders. Mr Pesonen also gave support for the report’s recommendation for a code of practice within the food chain.  

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