A major European initiative to strengthen farmers’ market position and ensure fairer conditions in the agri-food chain is set to be finalised in the coming period, with the achievement of a political agreement between the Council of the EU and the European Parliament on amending the regulatory framework of the Common Market Organisation, according to a statement by the Ministry of Agriculture, Rural Development, and Environment.
"At a particularly critical juncture, the Ministry of Agriculture, Rural Development, and Environment, as the Cyprus Presidency of the Council of the EU, took charge of the dossier on amending the Common Market Organisation, with several complex and unresolved issues requiring immediate political resolution," it is stated.
It is added that the amendment of the Regulation was one of the key priorities promoted by Cyprus in the agricultural sector, responding to the strong concerns of European producers regarding their income and their position in the value chain.
It is noted that the need to expedite the legislative process was imperative so that European farmers could see tangible benefits without further delay.
A significant milestone
"Acting as a truly impartial negotiator, the Presidency held targeted bilateral technical meetings with Member States and intensive negotiations with the European Parliament, seeking to reformulate provisions that could create disruptions in the agri-food chain," the Ministry says.
At the same time, it adds, "it undertook an extensive technical review and detailed refinement of the regulations, with the aim of resolving or preventing potential problems and shaping a more robust, functional, and implementable legislative framework."
The agreement reached, it is stressed, "beyond being a success for the Cyprus Presidency, represents a significant milestone in strengthening producers’ position in the market."
It is further noted that farmers gain stronger protection through mandatory written contracts that specify in advance the price, quantity, payment schedule, and terms of cooperation, limiting sudden price changes and unfair practices, while the Presidency has succeeded, through targeted flexibility, in allowing successful trading practices to continue, thereby avoiding additional administrative burdens for producer organisations and cooperatives.
Strengthening origin labeling
At the same time, it is added that "the Presidency’s actions strengthen origin labeling on agricultural products, with proportionate rules and no additional administrative burdens, allowing producers to highlight the value and local character of their production."
"Overall, the successful conclusion of the negotiations confirms that the European Union can respond quickly and effectively to the needs of the primary sector," the Ministry states, adding that the conclusion of the agreement sends a clear message that the European Union can respond quickly and effectively to the needs of the primary sector, enhancing market transparency, the collective strength of producers, and the fair distribution of added value.
"The contribution of the Cyprus Presidency was decisive in shaping a balanced and practical regulatory framework that boosts farmers’ income, strengthens their position in the value chain, and lays the groundwork for a fairer and more resilient agri-food market in Europe."
For Cyprus, it is noted, as well as for other Member States with small and family-run farms, this development is of particular importance, as it creates new opportunities to support agricultural income and boost the competitiveness of local products.
A fairer distribution of profits
As noted, the European Union is implementing significant changes to the rules governing the agricultural market, with the aim of strengthening farmers’ position vis-à-vis large buyers and ensuring a fairer distribution of profits within the agri-food chain.
These changes are a direct response to the intense protests by European farmers in 2024 and are expected to have a particularly positive impact on countries with small farms, such as Cyprus, the Ministry notes.
"In simple terms, the new European initiative aims at three key things: better prices for producers, greater transparency for consumers, and stronger producer organisations," it further notes.
Additionally, one of the most significant changes is that farmers will now have the right—and in most cases the obligation—to sell their products under written contracts prior to delivery. This means, according to the Ministry, that the price, quantity, payment date, and terms of cooperation will be known in advance.
"This limits arbitrary price changes and strengthens the protection of producers against unfair commercial practices," the press release points out.
It is also noted that the new rules give producer organisations greater flexibility to collectively negotiate better prices for their members. This, it is added, is particularly important for small producers who, on their own, have limited bargaining power.
Strengthening cooperation
Furthermore, the Ministry continues, the process for recognising organisations is simplified, the potential for cooperation among producers is strengthened, and funding from the European Union is increased, particularly for young farmers.
"For countries like Cyprus, where small family farms predominate, this development could prove particularly significant", it is underlined.
Furthermore, its is stated that, for the first time, European rules are being established for the use of terms such as “fair product,” “fair trade,” and “short value chain.”
"These terms may only be used when they truly reflect reality and not merely as marketing slogans. This protects both producers and consumers from misleading practices," the Ministry states.
It is noted that “short value chains”—namely, the direct or nearly direct sale of products from the producer to the consumer—can increase farmers’ income and strengthen the local economy.
According to the Ministry, the new rules strengthen the ability to indicate the country or region of production on food products, thereby reinforcing the link between local production and consumption and promoting local products. This also helps consumers know what they are buying, producers highlight the quality of local products, and small markets, such as Cyprus, protect their production from unfair competition.
Furthermore, the new regulations stipulate that designations related to meat may only be used for products that actually contain meat. This protects livestock farmers, prevents consumer confusion, and safeguards the value of animal products.
The Ministry of Agriculture adds that the European Union is increasing funding for investments through producer organisations, particularly when young farmers are involved.
In some cases, the aid can cover up to 70% of the investment cost, while additional support is provided for countries where producer organisations are less developed.
Why these changes are important for Cyprus
Regarding Cyprus, the Ministry notes that Cypriot agriculture relies primarily on small and medium-sized farms and on products with a strong local identity, such as halloumi. The new regulations can strengthen producers’ bargaining power, increase the value of local products, reduce unfair market practices, and support farm income.
"Overall, this is an important step toward a fairer and more resilient agri-food chain in Europe—with immediate benefits for both producers and consumers," the Ministry concludes.
(Source: CNA)
