AN IMPORTANT VICTORY FOR THE AGRICULTURAL WORLD - FAIRER PRICES AND AVOIDANCE OF HIDDEN CHARGES FOR FARMERS - Filenews 14/4 by Angelos Nikolaou
An important victory for the farmers of Cyprus and the whole of Europe is brought by the Cyprus Presidency of the Council of the EU, as the long-awaited agreement on changing the rules in the agricultural market was reached.
The new regulations, which are expected to be implemented in the coming period, are the shield of producers against large industries and supermarkets, putting order in the chaos of prices and opaque agreements.
The biggest twist comes with the mandatory written contracts. To date, many producers have been delivering their crops without knowing when and how much they will be paid. Now, before the product leaves the field, there should be a contract that will stipulate: a) The price so that it does not change arbitrarily. b) The quantity and delivery time. c) The date of payment. d) The terms of cooperation.
Especially for long-term contracts, a revision clause is introduced, so that if the cost of production increases sharply (e.g. electricity, fertilizers), the farmer can request a price adjustment.
Consumers will now know exactly what they are buying, as the rules are becoming very strict for labelling. The new rules strengthen the possibility of indicating the country or region of production on food. In this way, the link between local production and consumption is strengthened and local products are promoted.
Origin matters: The indication of the country or region of production is strengthened. Thus, the Cypriot product will stand out on the shelf and will be protected from unfair competition from cheap imports.
Consumers will know what they are buying, producers will highlight the quality of local products, and small markets, such as Cyprus, will protect their production from unfair competition.
Meat only... Meat: The use of meat names (e.g. 'sausage' or 'burger') for plant-based substitutes or laboratory products is prohibited.
This protects farmers, avoids consumer confusion and safeguards the value of animal products.
No more misleading words: Terms such as "fair product" or "local product" will only be allowed if they are proven in practice and if the producer actually receives a fair remuneration that covers his costs.
In particular, "short value chains", i.e. the direct or almost direct distribution of products from the producer to the consumer, can increase farmers' income and strengthen the local economy.
"Strength in unity" for the young people of Cyprus
For a country like Cyprus, where most farms are family and small, the agreement gives a "kiss of life" to the Producer Organizations.
Farmers, through the Producer Organizations, will be able to unite and negotiate prices together with large buyers, achieving better deals. In addition, the procedures for creating such a group and recognizing it are simplified.
At the same time, the possibility of cooperation between producers is strengthened and EU funding is increased, especially for young farmers.
The EU will cover up to 70% of investments in such organisations, with a particular focus on young farmers. Additional support is provided for countries where producer organisations are less developed.
These changes are considered important for Cyprus since Cypriot agriculture is mainly based on small and medium-sized farms and products with a strong local identity, such as halloumi. The new regulations can strengthen the bargaining power of producers, increase the value of local products, reduce unfair practices in the market and support agricultural income.
