TY - BOOK
T1 - Sustainability agreements in agriculture
T2 - Horizontal and vertical agreements in agriculture for the benefit of nature, the environment, the climate, animal welfare and the earning capacity of farmers
AU - Baayen, Robert P.
AU - Baltussen, Willy H.M.
AU - Beldman, Alfons C.G.
AU - van Galen, Michiel
AU - Jongeneel, Roel
AU - Logatcheva, Katja
AU - Schebesta, Hanna
AU - Schrijver, Raymond
PY - 2023
Y1 - 2023
N2 - Enhancing the sustainability of agriculture requires a better earning capacity for farmers. Besides government (i.e. taxpayer) support for sustainable production, consumers will have to buy the more expensive sustainable products and the extra price they pay will have to be passed on to the producer through the chain. This will require sustainability agreements between farmers and chain parties, complementary to existing initiatives and labels. This study examines the scope for lawful private sustainability agreements. Under the cartel prohibition in the EU Treaty, the possibilities are limited and insufficiently workable in practice. The CMO regulation offers several derogations to the cartel prohibition, which provide opportunities for farmers and farmers' associations to make sustainability agreements. In the 2021 CAP review, that space has been extended with an article (210a) added specifically for this purpose. This offers great opportunities. The agreements must be ambitious, exceed existing legal requirements and must be made by or with farmers (mutual agreements within the retail or processing industry without participation of farmers remain under the cartel prohibition). Another condition is that the agreements are indispensable to achieve the stated sustainability objective (no greenwashing). In addition, other derogations in the CMO regulation can be used, in particular for recognised producer organisations (Art. 152) and other farmers' associations (Art. 209) in combination with value distribution clauses (Art. 172a). Better prices for farmers for sustainable products mean higher costs for consumers for their food. However, making agriculture more sustainable also leads to societal benefits and financial space to compensate citizens who cannot afford higher food prices.
AB - Enhancing the sustainability of agriculture requires a better earning capacity for farmers. Besides government (i.e. taxpayer) support for sustainable production, consumers will have to buy the more expensive sustainable products and the extra price they pay will have to be passed on to the producer through the chain. This will require sustainability agreements between farmers and chain parties, complementary to existing initiatives and labels. This study examines the scope for lawful private sustainability agreements. Under the cartel prohibition in the EU Treaty, the possibilities are limited and insufficiently workable in practice. The CMO regulation offers several derogations to the cartel prohibition, which provide opportunities for farmers and farmers' associations to make sustainability agreements. In the 2021 CAP review, that space has been extended with an article (210a) added specifically for this purpose. This offers great opportunities. The agreements must be ambitious, exceed existing legal requirements and must be made by or with farmers (mutual agreements within the retail or processing industry without participation of farmers remain under the cartel prohibition). Another condition is that the agreements are indispensable to achieve the stated sustainability objective (no greenwashing). In addition, other derogations in the CMO regulation can be used, in particular for recognised producer organisations (Art. 152) and other farmers' associations (Art. 209) in combination with value distribution clauses (Art. 172a). Better prices for farmers for sustainable products mean higher costs for consumers for their food. However, making agriculture more sustainable also leads to societal benefits and financial space to compensate citizens who cannot afford higher food prices.
UR - https://edepot.wur.nl/590740
U2 - 10.18174/590740
DO - 10.18174/590740
M3 - Report
T3 - Report / Wageningen Environmental Research
BT - Sustainability agreements in agriculture
PB - Wageningen Environmental Research
CY - Wageningen
ER -