The consequences of the EU price transparency policy
Following the ban on unfair commercial practices
and the strengthening of cooperation between producers, the European Commission
has proposed a third element for a fairer food supply chain, namely:
Collect more intensively prices of agri-food
products at the various stages of the food supply chain to see how prices are
determined.
'If prices are more transparent, different
actors can make more conscious choices and there will be a better understanding
of price formation and the development of trends in the food chain. More
transparency can lead to better business decisions - such as better risk
management - and can increase confidence. "
This is a fairly official language for, as we
would say, the opening up of markets by providing insight into the pricing in
those markets.
The measures have recently been approved and
will apply from 1 January 2021. They will initially apply to the meat-, dairy-,
wine-, grains-, oilseeds and protein products-, fruit and vegetables-, olive
oil- and sugar sectors.
The data will be collected by the Member States
and reported to the Commission, which will make it available through their
channels.
The ambition of DCA-Markets is to record data
for all agricultural chains. Where that price information is missing,
DCA-Markets will develop systems to meet that need. As a Price Reporting Agent,
we are already making various quotations for dairy, pigs, manure, etc. We are
therefore in discussions with various bodies to be able to contribute to the
ambitions of the European Commission with regard to a fair chain and price
transparency in the agricultural sector.
Are you curious how we as DCA approach and guide the above? Or would you like to ‘spar’ with us to solve similar challenges within your company or sector? Then call 0320 269 523 or mail to contact@dca-markets.com.