Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-09-06-Speech-1-070"
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"en.20100906.17.1-070"2
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"Madam President, first of all, I want to thank the rapporteur, Mr Bové, for his work on this report. The food supply chain is extraordinarily complex, with so many different factors impacting on how it operates. I believe it needs delicate handling so that we do not end up enforcing the law of unintended consequences.
There is a problem, a real problem. We know this from our own Member States. Indeed, a recent survey in Ireland revealed that 74% of consumers believe that farmers do not receive a fair price for their produce. In Ireland, farmers receive approximately 33% of the retail price of milk, 50% of the retail price of beef and 20% of the retail price of cheese. But we also know this is true at EU level, as Commission research explicitly shows that, since 1995, the only actors in the food supply chain whose share of the retail price has been decreasing are the primary producers, or the farmers.
This cannot continue to happen. If it does, we will lose many of our primary producers, and then what happens to EU food security and food sovereignty? We must deal with these issues in the context of the CAP. The food supply chain is not functioning properly and farmers are not receiving fair revenues. I disagree with Mr Fox on one point; there is, in my view, a case of market failure and some intervention is needed, but the crucial question is to know what interventions we should make.
The Commission, I believe, needs to investigate and, where necessary, take action against, anti-competitive behaviour. There is no doubt that contractual imbalances associated with unequal bargaining power have a negative effect on competitiveness in the food supply chain, particularly for the smaller actors. The asymmetry in bargaining power that exists between the different contracting parties, to which the Commissioner referred, can often lead to a situation where larger and more powerful actors seek to impose contractual arrangements to their advantage. In simple terms, the small guys get squeezed.
A very interesting point that has not featured in this discussion, but is of relevance, is that there is ample evidence that we are exporting our unfair trading practices to developing countries, where huge EU-based multinationals abuse their dominant position in the marketplace. In that context, I believe we need a global response. I support voluntary contracts rather than compulsory ones, and the establishment in all Member States of an EU ombudsman. On a personal level, I disagree with below-cost selling.
Finally, I am pleased to hear the comments of the Commissioner and I applaud his proposals. This is a complex issue and requires a multi-faceted approach."@en1
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