European Commissioner for Agriculture and Food, Christophe Hansen, has criticized the so-called “price wars” in the food trade, advocating for a stronger direct marketing of agricultural products.
Hansen told the Funke Media Group (Sunday editions) that the price of a food product should always be such that farmers can live from it. “But there are indeed practices where food becomes part of a price war to attract customers” he added. “I find that concerning.”
Within the food value chain, people do make a good living from food, but not always the farmers, Hansen said. Farmers often have to accept prices from the trade that do not cover their production costs. “It’s often the case that the one who gets their hands dirty gets the least, and sometimes even nothing, and the earnings do not cover the production costs. That’s what I want to change.”
Farmers need to come together stronger to negotiate better with the wholesale market, the commissioner urged. In general, one should strive for farmers to market their products more directly. “Then, simply fewer people will take a piece of the cake.”
When asked if a changed practice would mean higher prices for consumers, Hansen replied, “Ideally, not.” He reactively considered the proposal of a Brussels expert committee to reduce taxes on food, saying, “That’s a topic I will discuss with the responsible colleague.”
Regarding the debate on the future of EU agricultural subsidies, the commissioner firmly rejected demands for cuts. The EU only spends 0.3% of the gross social product on agricultural policy, which maintains food production at high standards. “We should be willing to pay that” he said. “If we didn’t, we would be more dependent, and for consumers, it would be much more expensive.”
The commissioner advocated for shaping agricultural support so that only truly active farmers benefit: “We need to deal with the definition of an active farmer.” It is not uniform. “In some EU member states, it is sometimes enough to have one or two horses on a field to qualify for agricultural subsidies.” Many farmers also rightly object to investors, who are not farmers themselves, buying agricultural land to receive EU funds.