European Union should better direct food price formation

18.01.2010

European Union must find resources to avoid unproportionally big markups in food price formation. In the opinion of Estonia, besides the Commissioner for Agriculture and Rural Development, other Commissioners should also be involved in the process.

At their meeting today, the EU Ministers of Agriculture and Fisheries discussed the problems related to the food supply chain and price formation. Minister of Agriculture Helir-Valdor Seeder says that the necessity to somehow regulate the markups applied to foodstuffs has been discussed for a long time. „As long as this problem is tackled by the Ministers of Agriculture and the Commissioner for Agriculture and Rural Development alone, nothing will change in the sector as the real levers are held by the other Commissioners,“ told Seeder.

Therefore, a respective proposal was made by Seeder at the Council meeting today. „Certainly the Commissioner for Competition should also be involved and the essence of the problem should thoroughly be explained to him,“ noted Seeder. „Why, in several sectors, the necessity for the existence of market rules has been understood.“

Through its High Level Expert Group on Milk, the Commission has been working at the problem in recent months. On the basis of different analyses it can be stated that in the food chain, lowest profit is earned by farmers. This is why the position of producers in the food supply chain certainly has to be dealt with.

Additional information:
Peeter Seestrand
Deputy Secretary General for Foreign Affairs and Development
phone: + 372 6256 105
e-mail: peeter dot seestrand at agri dot ee

Olavi Petron
Head of Section at the Permanent Representation of Estonia to the EU
phone: +322 227 43 01
e-mail: olavi dot petron at mfa dot ee

Hindrek Riikoja
Deputy Head of Public Relations Department
phone: +372 6256 255, +372 53 030 865
e-mail: hindrek dot riikoja at agri dot ee