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Friday, 12 February 2010

Copa-Cogeca Warns of Impact of Retailers Price Wars on Farmers

Copa-Cogeca warned today that EU farmers are increasingly becoming the victims of retailers price wars and urged EU politicians to take action. Copa-Cogeca Secretary-General Pekka Pesonen stressed “This is an unacceptable situation.The downward pressure on retail prices squeezes the entire food chain. The drop in farmgate prices, which is not matched by a fall in production costs, puts an unbearable pressure on producers incomes which plummeted by 12.2% on average last year. In some cases, it drives farmers out of business. Aggressive price competition has also been found to limit consumer choice and cause a disruption in the production of seasonal products such as fruit and vegetables”.Copa-Cogeca consequently urged the EU Commission, Euro-MPs and EU Ministers to rapidly take action. The move came as Euro-MPs agriculture committee debated the issue in Brussels today. It also came before the EU Commission is set to propose later this year concrete legislative proposals designed to improve the functioning of the food supply chain. Copa- Cogeca calls on them to propose measures which rebalance the power in the food chain and contribute to its better operation.

Source: Flex News Food