Germany backs review of stronger EU protections for food suppliers

Germany has signaled support for examining stronger European Union protections against unfair trading practices in the food supply chain, after eight member states called for tougher rules for suppliers dealing with large buyers.

The issue was discussed on Monday, October 26, at a meeting of EU agriculture ministers. In a statement published on Thursday, October 29, the German Food and Drink Industries Federation, known as BVE, said Berlin had reacted positively to the initiative and would review the proposals carefully as talks continue in Brussels.

The push centers on the EU directive on unfair trading practices, known as the UTP directive, which sets minimum protections for suppliers of agricultural and food products. According to BVE, the latest debate gained momentum after Bulgaria, Croatia, Poland, Romania, Slovakia, Slovenia, the Czech Republic and Hungary issued a joint declaration calling for broader protections and stronger enforcement.

Those countries want the EU to remove turnover thresholds that limit which suppliers are covered, expand the list of banned practices and apply the rules more consistently across the bloc. They also asked the European Commission to examine an EU-wide ban on selling agricultural and food products below production cost.

Germany did not endorse every proposal at the ministerial meeting, but it welcomed the declaration and said it would study it in the broader review process. BVE described that response as a positive signal, saying the open debate showed growing recognition that fair competition requires clearer and more effective rules.

France and Romania went further during the discussion, according to BVE, by backing protection for suppliers regardless of their annual revenue. That point is important because the current framework only protects suppliers up to certain size limits. BVE has repeatedly argued that the €350 million turnover ceiling for protected suppliers should be scrapped, saying unfair pressure from powerful retail buyers can affect manufacturers well beyond that level.

The federation is also calling for a wider list of prohibited practices, tougher and more uniform enforcement across the EU, stronger anonymity safeguards for complainants and broader rights for trade associations to bring cases on behalf of suppliers. BVE says suppliers are less likely to report abusive behavior if they fear losing commercial relationships.

The debate matters beyond the broader food industry because any expansion of supplier protections could also affect beverage producers that sell through large supermarket and discount chains in Germany. Wineries, brewers, distillers and other drinks suppliers could face different conditions in negotiations over pricing, promotions, payment terms or order changes if the EU widens coverage and tightens enforcement. That effect remains potential, since no reform has been approved.

One of the more contentious points is whether the EU should outlaw sales below production cost. The eight-country initiative asked the Commission to consider such a measure, but Germany’s agriculture minister, Alois Rainer, warned that bans tied to production costs could create added bureaucracy. BVE also opposes that approach, even as it supports other parts of the initiative. The federation said backing the states’ core demands does not mean agreeing with every proposal under discussion.

The European Commission is preparing a targeted revision of the directive, EU Agriculture Commissioner Christophe Hansen said, according to BVE. The review is expected to focus on improving enforcement and clarifying or extending existing rules. A Commission proposal is expected in December or in early 2027.

No changes were adopted at the October 26 council meeting. For now, the political shift is that several member states, with Germany showing openness to the discussion, are pressing for a stronger system to shield suppliers from commercial practices they say can leave them exposed when dealing with much larger retail customers.