The European Commission has signalled that a thorough review of the Unfair Trading Practices (UTP) directive will be carried out next year after which it will propose any amendments it deems necessary to strengthen fairness rules in the agri-food supply chain.

The move is aimed at restoring trust in the agri-food supply chain, which the Commission acknowledged has been left shaken by food inflation and a shifting of the value generated by agri-food goods.

Changes to EU law are also planned for later this year, which would introduce a framework for initiatives looking to boost farmer margins in fair-trade and short supply chains agreements.

The Commission has suggested that this framework would open the door for social sustainability to be included in processor and retailer sustainability plans.

It is proposed that an observatory is established immediately by the Commission, where experts from along the supply chain will report on production costs, margins and trading practices.

It is also planned that the footing farmers hold in contracts drawn up with buyers will be strengthened, as will the standing of producer organisations.