scholarly journals Contracts in the agri-food supply chain within the framework of the new Common Agricultural Policy

Author(s):  
Luigi Russo

The paper is focused on the measures provided for under new EU regulations in an attempt to address the problems arising for the agricultural producers by the CAP reforms of 2003 and 2013; with these reforms the Community radically modified the framework of its agricultural policy, substantially eliminating the (already reduced) forms of market management and making further substantial cuts in the amount of coupled support in favour of an almost sudden (and improvised) switch to a system of direct payments to farmers, largely decoupled from production, as a means of supporting the income of agricultural producers. As a result, the latter suddenly found themselves exposed and forced to operate not on a European scale but rather in a global market, and what is more without any forms of protection.

2020 ◽  
pp. 135-154
Author(s):  
Trinidad Vázquez Ruano ◽  
Juan Latorre Ruiz

The work we present addresses the new challenges that arise in the European framework regarding the agri-food chain, following the recent approval of Directive (EU) 2019/633 of 17 April on unfair trading practices in business-to-business relationships in the agricultural and food supply chain. The European Commission has dealt with small and medium-sized food and agricultural companies, producers and farmers in the food supply chain who represent a vulnerable sector in the agri-food supply chain. The new normative text aims to limit the possible unfair trading practices that are carried out in the supply chain and that involve the alteration of the equal opportunities of small and medium-sized food and agricultural companies, producers and farmers. Fundamentally due to the diverse negotiation capacity, in accordance with the proposals for the modernisation of the Common Agricultural Policy (CAP).


2012 ◽  
pp. 319-340
Author(s):  
Angelo Frascarelli

In economic literature, agricultural policy instruments for market and price stabilisation are classified in two broad categories: direct instruments and indirect instruments. Having the direct instruments failed, the cap proposals for years 2014-2020 are focusing on the indirect instruments: producer organisations, collective bargaining, interbranch agreements, transparency of the food supply chain, market risk management. Such themes emerged in the recent debate on agricultural policy because of two facts: strong volatility of agricultural prices and a growing disparity between basic prices and consumer prices. Objective of the present work is the evaluation of eight instruments of agricultural policy for improving the food supply chain functioning, with an analysis of potential economical consequences of the various options. The evaluation takes into account both efficiency (expenditure level, simplicity of use of the instruments, compatibility with Wto rules) and effectiveness (market and prices stabilisation, strengthening of producers position in the food supply chain, market transparency). Analysis was conduct referring to economic literature, to empirical evidences coming from sectors that use indirect instruments, and to results of studies produced by public or private organisations.


2019 ◽  
Vol 78 ◽  
pp. 116-135
Author(s):  
Tomasz Drabik

The aim of this study is to present the instruments of direct support after 2020. The article presents the history of direct payments since their establishment in 1992 to today’s model of direct support that agricultural producers receive. The study also presents the position of the Polish Government regarding legislative proposals of the Common Agricultural Policy after 2020.


Author(s):  
Zdeňka Malá ◽  
Gabriela Červená ◽  
Michaela Antoušková

Common agricultural policy has fundamentally projected itself into the business management of individual agricultural businesses. The submission addresses the assessment of the effects of subsidy policy on the production, costs and profit of agricultural businesses that engage predominantly in plant production. At the same time, it determines the effects of subsidy policy on demand for the production factors of labour and land. To the research questions more than 100 agriculture businesses were analyzed. The date from financial statements enabled to construct production function model, to quantify the cost function, the function of demand for land, the demand for the production factor of labour and finally the profit function was constructed. The results of research evidence the fact that direct payments have a negative effect on the production of agricultural businesses, but on the other hand they initiate demand for agricultural land and increase the profit of agricultural producers. The results also show direct payments do not motivate agriculture businesses towards increased production. The direct payments also increase the demand for production factor of land and they have also a significant effect on the value of profit.


2018 ◽  
pp. 91-101
Author(s):  
Izabela Lipińska

The aim of this article was to answer the question whether and to what extent the amendments to the legal organisation of the milk and milk products market introduced as of 1 January 2018 contribute to improving the lives of milk producers and the development of the market. This refers to certain legal solutions adopted by the EU legislator which aim to strengthen the role of agricultural producers and their organisations in the agri-food supply chain. The amendments to Regulation 1308/2013 have not changed the organisational framework of the market, but addressed basically two issues – the obligation to conclude raw milk delivery contracts and contractual negotiations in this sector. The legal solutions adopted by the legislator are very positive. Written contracts, which are mandatory in many Member States, define and guarantee the producers’ rights and clearly indicate the obligations associated with the production process. In turn, entrusting the role of a negotiator of contract terms to producers’ representatives should be seen as recognition of their significant role in shaping the market in a manner adequate to its needs.


2019 ◽  
Vol 19(34) (4) ◽  
pp. 47-57
Author(s):  
Justyna Góral ◽  
Włodzimierz Rembisz

The issue of agricultural producer participation in the final food price is of interest to scientists and politicians. The European Commission (2014, 2016) commissioned the preparation of expertise in this area, as a result of which actions were taken to strengthen the agricultural sector. In Poland, for example, the promotion of direct sales has been intensified. These activities are aimed at shortening the food supply chain and improving the market power of agricultural producers. Market power means the ability of an enterprise to increase the price of its own product without reducing the level of sales to competitors. The aim of the research was to indicate trends in the area of marketing margins and added value in the food supply chain. This measurement served the search for the answer - which product groups have the highest level of added value and the greatest ability to improve the income of agricultural producers? The estimation of the value added illustrates - where does the "food zloty" of the final consumer go?


2019 ◽  
Vol 17 (Suppl.1) ◽  
pp. 565-571
Author(s):  
H. Tsvetanov

Reducing the budget for the Common Agricultural Policy (CAP) has given rise to a wide public response and debate both in practice and in the scientific community, as well. The purpose of this study is to study the dependence of income on direct payments, thus demonstrating their importance for agricultural producers. The methods used to convey the present study are scientific research methods: comparative analysis method, induction and deduction method, retrospective analysis and others; illustrative methods - tables, figures and others. Regarding the expected results, this article focuses on the study of indicators for measuring dependence of the income of direct payments made by agricultural producers in terms of achieving economic impact on them. To achieve this goal, the following tasks are set: to characterize the parameters for the study of the relationship between income and direct payments to agricultural producers; to analyze the relationship between income and direct payments to producers via the indicators studied; to bring out the results of the indicators studied for analyzing the relationship between income and direct payments to producers.


2012 ◽  
Vol 3 (1) ◽  
pp. 45-47
Author(s):  
N.Arunfred N.Arunfred ◽  
◽  
Dr.D.Kinslin Dr.D.Kinslin

New Medit ◽  
2020 ◽  
Vol 19 (1) ◽  
pp. 19-34 ◽  
Author(s):  
Marinos Markou ◽  
Andreas Stylianou ◽  
Marianthi Giannakopoulou ◽  
Georgios Adamides

Unfair Trading Practices (UTPs) between businesses in the food supply chain have a significant impact on the various stakeholders involved, and on the environment. So far, no attempt has been made at the Member State level for the identification of UTPs in the food supply chain and their impact on the relevant stakeholders. This study drew on this gap and attempted to identify the UTPs that exist in the Cypriot food supply chain, assess their impact on the involved stakeholders and provide guidelines that will assist the transposition of EU relevant Directive to the national law. To achieve this goal, the study was based on a quantitative survey of a representative sample of businesses using a specific questionnaire. The results showed that particular UTPs do appear in the food supply chain with a different frequency, while the majority of businesses have been victims of UTPs in the last five years. Notably, the estimated cost of UTPs as a percentage of the business annual turnover is considered important ranging from 5.7% for retailers to 31.9% for farmers. Thus, most participants agree that UTPs in the agricultural food sector should be regulated by national legislation. We argue that the national legislation for UTPs should be a mix of policies that integrate private, administrative and judicial methods of monitoring and enforcement. Policy and decision makers should seek to reinforce the role and the bargaining power of small businesses in the food supply chain. This might be accomplished through the development of efficient producers’ organizations, short food supply chains, interbranch organizations and strategic partnerships.


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