The European Council has adopted new rules to improve farmers’ position in the EU food supply chain, to ensure “they receive a fairer share of value”.

These changes intend to boost farmers’ negotiating power in relation to buyers (such as processors and retailers).

The changes also aim to promote fair contracts and strength producers organisations.

Maria Panayiotou, Minister of Agriculture, Rural Development and Environment of the Republic of Cyprus, said: “Today's adoption marks an important step towards a fairer and more resilient agri-food sector.

“The Cyprus Presidency’s efforts have consistently focused on achieving timely and efficient agreements that benefit farmers, promote fair trade, and strengthen a food supply chain capable of delivering adequate and affordable food for our citizens.”

Cyprus is holding the rotating presidency of the EU, a role that will be taken on by Ireland this week, from July 1 until the end of this year.

The reform introduces targeted amendments to the regulation on the Common Market Organisation (CMO) of agricultural products, alongside complementary changes to the Common Agricultural Policy (CAP).

New rules

The new rules make written contracts standard and include review clauses to reflect market changes.

They also simplify the recognition of producer organisations and support their collective action, including through CAP funding.

Harmonised rules are introduced for voluntary marketing terms such as "fair" and "short supply chain" to improve transparency.

Additionally, the legislation strengthens protection of the term "meat", reserving it for animal-based products, and sets clearer rules to prevent misleading marketing and ensure fair competition.

The measures also respond to concerns about farmers’ weak position in the supply chain. They complement existing rules on unfair trading practices and aim to improve income stability and value distribution.

The act will now be signed and published in the Official Journal of the European Union, after which it will enter into force.

Some changes, particularly those concerning meat designations, will start to apply after a three-year transition period, to give the industry time to adapt.