On 24 June 2026, the EU Council adopted a regulation aimed at strengthening farmers' position in the food supply chain, amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116. The adoption proceeded despite Latvia voting against and the Netherlands withholding support, while Austria did not oppose but flagged concerns.
The regulation introduces mandatory written contracts for all agricultural products, including milk, and lowers the minimum supply value threshold for such contracts from EUR 20,000 to EUR 10,000. It also extends competition law exemptions to non-recognised producer organisations, cooperatives, or equivalent legal forms pending recognition for up to five years. These measures aim to enhance farmers' bargaining power and address imbalances in the food supply chain.
Latvia voted against the proposal, arguing that mandatory written contracts and mediation should remain at Member State discretion. Specifically, it opposed Article 148 on dairy sector contracts and the reduction of the supply value threshold. The Netherlands welcomed the agreement on contractual relations but could not support last-minute restrictions on meat-related terms and cultivated meat, citing unnecessary regulatory burden and harm to innovation and competitiveness. Austria agreed to the compromise but requested the Commission evaluate the impact of mandatory written contracts for all agricultural products, including new conditions for cooperative exemptions and a revision clause allowing unilateral termination of contracts over 12 months (6 months for milk). Austria also flagged concerns that extending competition exemptions to non-recognised entities creates administrative burden, legal uncertainty, and weakens the current recognition regime.
The regulation is now adopted and will enter into force following publication in the Official Journal. The European Parliament had earlier approved the text in first reading. The Commission is expected to monitor implementation and report on the effects of the new rules, particularly regarding the mandatory contracts and competition exemptions.
Farmers stand to benefit from stronger contractual protections and lower thresholds, potentially improving their bargaining position. However, producer organisations may face administrative burdens and legal uncertainty from the extended competition exemptions to non-recognised entities. Food processors and retailers may face increased compliance costs from mandatory written contracts and reduced flexibility in supply arrangements. EU Member States will need to adapt national legislation and enforcement mechanisms, with some like Latvia and the Netherlands expressing concerns over regulatory overreach and impacts on innovation.