A new report from the European Commission has said that enforcement of EU competition rules is "essential so that farmers can operate on an equal footing".

The commission has published its periodic report on the application of EU competition rules in the agricultural sector, which found that EU competition rules "make markets fairer and more resilient for farmers".

According to the commission, 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 looks at 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.

Challenges

The commission said that the EU legislation recognises the "specific challenges" faced by farmers and provides for the "necessary exclusions" from EU competition rules in order 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," the commission said.

"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.

"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 commission said 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," the commission said.

Investigations

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 aimed to address concerns in the agri-food supply chain, prevent anti-competitive practices and, where necessary, required companies to change their behaviour or pay fines.

According to the commission, farmers were the largest source of investigations by submitting complaints to competition authorities.

Cases

The commission explained: "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.

"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.

CMO

The Treaty on the Functioning of the EU 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). 

The regulation 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 this year 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.