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A perspective of the food supply chain Philippe CHAUVE Head of the Food Task Force DG Competition 19 June 2012 EP workshop on "relations along the food.

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Presentation on theme: "A perspective of the food supply chain Philippe CHAUVE Head of the Food Task Force DG Competition 19 June 2012 EP workshop on "relations along the food."— Presentation transcript:

1 A perspective of the food supply chain Philippe CHAUVE Head of the Food Task Force DG Competition 19 June 2012 EP workshop on "relations along the food supply chain", 19 June 2012 The views expressed in this presentation are personal and do not commit the European Commission

2 A few issues and ideas thereabout  Prices  Value-added in the chain  Who is behaving badly?  The farmers’ position  Unfair trading practices Main sources: ECN report and Task Force’s own investigation

3 Agricultural commodity Price developments

4 Consumer Price developments

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6 What drives prices (source « ECN food report », monitoring and antitrust actions by Competition Authorities)  Demand or supply characteristics and variations: e.g. Irish groceries, Italian fruit and vegetables, beer in UK and Latvia. => prices are not necessarily the result of anti-competitive behaviour  Weakened competition: e.g. Bulgarian, Danish, Latvian and Lithuanian dairy processors  Competition law infringements, about 50 cartels in : e.g. cartels of millers, bakers or pasta producers in the cereals chain, cartels of poultry producers and of egg producers.

7 stribution of value added in the EU-25 food supply chain ( ) Distribution of value added in the EU-25 food supply chain ( ) 31% 29% 24% 31% 33% 11% 13% 27% 28% 30% Food retail Food wholesale Food industry Agriculture 100%=476 bio €522 bio €537 bio €

8 Consumption of processed and non-processed food

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10 Price transmission : the Dutch NCA analysis on  Levels with the highest number of cases in the food sector: processing and retail

11 The enforcement record  Levels with the highest number of antitrust cases in the food sector: processing and retail

12 What about the farmers’ position?  Unequal bargaining power is a fact identified by NCAs in many markets in the first level, sometimes further downstream: e.g. for milk producers /dairies in Bulgaria, France, Hungary and Romania, bakeries / retailers in Latvia  Pro-competitive consolidation on the primary production level is the way forward =>A key element of the CAP reform

13 What about « unfair trading practices »?  Many NCAs investigated them  Few cases under national competition law, essentially about retailers in three member states  most instances do not harm consumer welfare=> not a competition issue  some NCAs question the impact on innovation and choice => Follow-up: self-regulation under the HLF, a Commission communication, investigations by competition authorities

14 Thank you!


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