Özdemir strengthens farmers' sales position
Agriculture Minister Cem Özdemir confirmed to farmers that he intends to strengthen their position following massive farmer protests at the beginning of the year. A change in the Agricultural Organizations Supply Chain Law is planned to guarantee the sale and payment of their produce to dealers.
With changes to the Agricultural Organizations Supply Chain Law, Agriculture Minister Özdemir aims to strengthen farmers. The change will close open loopholes and provide farmers, especially in the sale of their produce, with greater support, Özdemir stated. "He who stands at the beginning of the value creation chain should not be shortchanged at the end of the payment."
Additionally, already prohibited practices could no longer be circumvented. "The supermarket could previously tell the farmer, 'I won't buy your strawberries, please take them back,'" Özdemir said. "Payment was not made then. We are putting an end to that."
The legislative change will be discussed for the first time in the Bundestag in the afternoon and is expected to be passed before the summer break begins in the coming week. It is part of the package of agricultural reforms that the traffic light coalition SPD, Greens, and FDP agreed to at the beginning of the week. This also includes bureaucracy reduction and tax relief.
Farmers' sales risk to be abolished
Background is the farmers' protests at the beginning of the year against cuts in tax relief in the agricultural sector. "We are putting a good foot forward in terms of fairness in the value creation chain with these changes," Özdemir said, looking at the amendments. The Agricultural Organizations Supply Chain Law will also provide more permanent protection to suppliers in the future.
It is currently forbidden to return unsold produce like strawberries to the trade without paying the purchase price. This so-called return ban could be circumvented, according to information from the Agriculture Ministry, if the trader ordered the supplier to retrieve the produce. This will change now. The risk of further sales lies with the trader.
With the proposed changes to the Agricultural Organizations Supply Chain Law, Cem Özdemir aims to bolster the economy of the farming sector by addressing issues in supply chains. This involves closing loopholes and ensuring farmers receive fair payment for their produce, stating, "He who stands at the beginning of the value creation chain should not be shortchanged at the end of the payment." Furthermore, the legislation aims to prevent practices that have previously allowed supermarkets to avoid purchasing unsold produce, such as returning strawberries, without payment, which will now shift the risk of further sales to the trader.
