European Union lawmakers have reached a provisional agreement on new measures designed to strengthen farmers’ bargaining power in the food supply
chain and help stabilise their incomes. The deal, negotiated between the European Parliament and the Council on Thursday, also introduces stricter rules for meat labelling and new protections for dairy producers.
The agreement aims to ensure that food prices more accurately reflect the real costs farmers face when producing agricultural goods. Under the proposed rules, EU member states will be required to create and publish online indicators that can serve as benchmarks in contracts between farmers and buyers. These indicators are expected to make pricing negotiations more transparent and fairer for producers.
A key element of the reform focuses on boosting the role of producer organisations (POs). These groups will be allowed to negotiate more directly with buyers on behalf of farmers. The new rules also aim to prevent buyers from bypassing these organisations by approaching individual farmers directly, strengthening collective bargaining power within the sector.
Clearer rules for labels and marketing
The agreement also clarifies how terms such as “fair” and “equitable” can be used on agricultural product labels. To use these claims, producers will need to meet specific criteria, including demonstrating that the product contributes to rural development or supports farmer organisations.
In addition, lawmakers introduced a formal definition of meat as the “edible parts of animals.” Product names such as “steak” or “liver” will be reserved exclusively for items that contain animal meat, preventing their use for lab-grown or cell-based alternatives.
New rules also govern the use of the term “short supply chain.” Products may only carry this label if they are produced within the EU and involve a limited number of intermediaries between farmers and consumers, or if they are transported over a short distance or time.
New protections for dairy farmers
The agreement includes targeted support for the dairy sector, which has faced significant economic pressure in recent years. Dairy producers will benefit from mandatory written contracts with buyers. These contracts will include provisions allowing flexibility on price indicators and revision clauses to adjust terms when market conditions change.
Lawmakers hail agreement as win for farmers
Rapporteur Céline Imart (EPP, FR) said: “The agreement reached today constitutes a major victory for our farmers. Secured contracts will guarantee them a fair place in the value chain, and the requirement for a mediation mechanism will safeguard their income in the event of a dispute with their primary buyer.
Granting unrecognised producer organisations an exemption from competition law will also enable farmers to better organize themselves, strengthen their weight within the value chain, and protect their income.
With regard to the protection of the designation “meat”, this agreement represents an undeniable success for our livestock farmers. By reserving the use of the terms ‘steak’ and ‘liver’ for products from our livestock farmers, and by committing the co-legislators to extend the list during negotiations within the framework of the reform of the Common Agricultural Policy, Parliament has taken a decisive step forward. The trilogue agreement reached today recognises the value of livestock farmers’ work and protects their products, fruits of unique know-how, against a form of unfair competition.
Moreover, the explicit inclusion in the text of the prohibition on using the designation ‘meat’ for any laboratory-grown or cell-based product constitutes a decisive step forward for our farmers and for the preservation of the agricultural and food heritage that we defend.”
What happens next
The provisional deal still needs formal approval from both the European Parliament and the Council before the rules can take effect.
Background
The reform stems from a proposal put forward by the European Commission in December 2024 to update the EU’s rules on the common organisation of agricultural markets. The initiative came after years of protests and economic pressures faced by farmers across the bloc.
The broader proposal aims to improve farmers’ position in the food supply chain by strengthening contract rules, increasing the negotiating power of producer organisations, and encouraging voluntary initiatives that support social sustainability in agriculture. It also complements a separate regulation aimed at improving cross-border enforcement of EU rules against unfair trading practices.