EU Fortifies Farmers with Mandatory Written Contracts

The European Union is enacting one of its most significant agricultural reforms in years, introducing mandatory written contracts between farmers and buyers in all member states. This new regulation, published in the EU's Official Journal, aims to bolster producers' negotiating power, increase transparency in commercial transactions, and safeguard their income from market volatility.

The rules will take effect on August 19, 2028, providing member states and businesses with a transition period. While Greece already has legislation on unfair commercial practices and the food supply chain requiring written contracts, this measure now establishes a unified European standard. The European Commission acknowledges that many farmers are at a disadvantage compared to large buyers and often avoid written agreements for fear of commercial retaliation or losing business partnerships. Mandatory contracts will clearly define purchase terms, quantities, delivery schedules, and financial obligations, thereby reducing arbitrary changes and trade disputes.

The reform also streamlines the functioning of Producer Organizations, allowing them to be recognized with a single application across multiple agricultural sectors. Furthermore, associations of producer organizations will gain the right to engage in collective bargaining, including price negotiations, on behalf of their members. This significantly strengthens farmers' position when dealing with the food industry and organized retail.

Specific protections are being introduced for meat and dairy products. From August 19, 2029, terms like 'meat' will be exclusively used for animal-derived products, preventing their application to plant-based or cell-cultured alternatives to avoid misleading consumers. In the dairy sector, written contracts will extend beyond fresh milk to cover other dairy products, and limits for collective bargaining in milk procurement will be raised, further empowering producers. This reform is part of the EU's broader strategy for a fairer agri-food chain, aiming to rebalance power between producers, processors, and retailers, increase market transparency, and make farming more attractive to younger generations facing economic and demographic challenges.