The European Commission has published its periodic report on the application of EU competition rules in the agricultural sector, highlighting the role of this regulatory framework in supporting a more balanced, competitive and market-oriented agri-food chain.
According to the report, European rules provide farmers with tools to work together, strengthen their position within the agri-food supply chain and contribute to markets that are fairer, more resilient and also beneficial for consumers.
The document also highlights coordination between the European Commission and the national competition authorities of the Member States to ensure effective enforcement of the rules and preserve sound competition in agricultural markets.
Cooperation to gain strength in the chain
EU legislation recognises the specific challenges faced by farmers and provides certain exclusions from general competition rules to allow forms of cooperation that strengthen their market position.
These tools include producer organisations, which can negotiate collectively on behalf of farmers, plan production and manage supply more efficiently.
The European framework also allows other forms of cooperation between farmers, known as horizontal cooperation, as well as agreements with other actors in the agri-food supply chain, within what is known as vertical cooperation.
These possibilities are designed to improve producers’ bargaining power, help them manage risks and allow them to respond more effectively to market challenges.
Sustainability and cooperation
The report also recalls that EU rules allow producers and other operators in the agri-food supply chain to cooperate on agreements aimed at achieving sustainability standards higher than those required by European or national legislation.
However, Brussels warns that these possibilities are not yet being fully used. According to the Commission, greater participation by farmers in producer organisations and in other forms of cooperation, including those linked to sustainability, would allow them to make better use of the opportunities offered by the EU framework.
Enforcement protects farmers
The report also underlines that the effective enforcement of competition rules is essential to ensure that farmers can operate under more balanced conditions.
Between July 2017 and July 2025, the European Commission and national competition authorities concluded around 110 investigations in the agricultural sector. These actions helped address possible anti-competitive practices within the agri-food supply chain and, where necessary, required companies to change their behaviour or pay fines.
According to the document, farmers were the main source of these investigations, as they submitted complaints to competition authorities.
Practices that weaken the producer’s position
Among the most frequent cases were agreements between buyers to coordinate prices or volumes, a practice that reduces farmers’ ability to negotiate freely and weakens their position in the market.
RELATED NEWS: European Parliament gives green light to NGTs
Cases of collusion to raise prices were also detected, including bid-rigging practices by suppliers of dairy products and other food products, even to the detriment of food charities.
In addition, some national farming initiatives had to be amended at the request of competition authorities to avoid protectionist practices based on a preference for domestic products.
Guidance for collective initiatives
Beyond investigations, the European Commission and national competition authorities have also provided guidance for collective initiatives promoted by farmers, particularly in the area of sustainability.
The aim is to ensure that these actions can be developed within the legal framework, avoiding distortions of competition while facilitating greater cooperation between actors in the chain.
More open and balanced markets
Through enforcement and guidance for operators, the European Commission argues that agricultural markets can remain open, competitive and better structured.
The report concludes that competition rules are not only intended to protect the functioning of the market, but also to give farmers room to cooperate, gain scale and improve their position within an increasingly demanding agri-food chain.
According to Brussels, wider use of these tools could help strengthen the sector’s resilience, improve the relationship between producers and buyers, and ensure benefits for both businesses and consumers.
