Towards a more efficient food supply chain

Recent years have seen wide fluctuations in food prices in Europe. This has caused hardship for agricultural producers and raised the question whether consumers are getting a fair deal. On 18 January, EU ministers for agriculture discussed ways to improve the functioning of the food supply chain, in particular to avoid an escalation of consumer food prices as the recovery sets in.

© Fotolia

In their debate, ministers focused on the following three priorities to remedy the situation:

- promoting sustainable and market-based relationships between stakeholders in the food supply chain,

- increasing transparency along the chain to encourage competition and improve its resilience with respect to price volatility, and

- fostering the integration and competitiveness of the European food supply chain across member states.

Agricultural commodity prices rose sharply in 2007 and reached record levels by early 2008. This resulted in increased consumer food prices and higher overall inflation. But whereas the prices of agricultural commodities started plummeting in the second quarter of 2008, consumer prices kept rising and only started to fall in May 2009. This delayed impact on food prices has raised concerns about the functioning of the food supply chain.

The food supply chain connects three important sectors: agriculture, food processing and distribution. Its performance affects citizens directly, since food represents 16% of European household expenditure.

More information:
Council press release 
Council webcast of press conference