Package ready that should counteract fluctuating prices for Belgian growers

In the aftermath of the farmers’ protests, the federal government in Belgium is introducing a mechanism to take faster action in the event of rapidly rising or falling prices in the agricultural and food sector. The Belgian government has prepared a draft with a number of measures that can be taken if necessary if prices threaten to become out of balance. The package is the result of consultation between government, agricultural organizations, retail and distribution that Federal Minister of Agriculture Clarinval had initiated, De Tijd writes.

There will be stricter supervision of price developments for twelve product groups, including potatoes, beef or pork. If the Federal Government’s Price Observatory determines that product prices are above or below a certain price threshold, chain consultations will take place to find an ‘appropriate response’.

There will also be an extension of the Unfair Commercial Practices Act. This means that price negotiations between the various players in the chain are monitored more closely. There will be a ban on removing products from the shelves without prior written justification. In addition, there will be more opportunities to renegotiate contracts in the event of unforeseen and exceptional circumstances.

Supermarkets must also provide better reasons for why they are demanding compensation. The ban on selling at a loss is also being strengthened. It should all lead to a strengthening of the position of farmers and food companies in price discussions with supermarkets.

Source: De Tijd