Pricing and supply agreements have moved to the top of the EU agenda after a long-term lobbying campaign by the National Farmers' Union (NFU).

In an almost unanimous vote, MEPs in Brussels have adopted a report that outlines pricing and supply agreements as real problem areas for food producers when dealing with retailers.

The report goes on to describe how producer margins are being squeezed at a time when there is huge downward pressure on prices.

The campaign received backing from the European Commission, which has this week recommended an EU-wide code of conduct for supplier and retailer relations.

Meurig Raymond, NFU deputy president, said: “After a long-running campaign by the NFU, the importance of developing a fair supply chain is finally gaining recognition in Europe.

“This is also a week where the European Commission has answered NFU calls for more fairness in the food industry by recommending an EU code of conduct for the food supply chain.

“Above all support from Europe is just what we need at a time when the NFU is campaigning at a national level for stricter codes of conduct and the introduction of an ombudsman to protect suppliers.”

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