Copyright licence

---

Year of publication 2024

---

Place of publication Rome, Italy ;

---

Pages 7 p.

---

Author FAO

---

Publisher FAO ;

---

Product type Booklet

---

Category Technical brief

---

Synopsis (short abstract) In the aftermath of the COVID-19 pandemic, the imbalances in bargaining power between suppliers and buyers of agricultural and food products, already a concern before the pandemic, were amplified further. Rapidly rising production costs have led to appeals by producers for these higher costs to be reflected in prices paid to them. There is now concern that the apparent imbalances lead to unfair trading practices (UTPs) in agricultural supply chains and that these unfair trading practices are not only reflected in untenably low producer prices, but in some cases, in contractual arrangements that significantly deviate from good commercial practice. The available evidence indicates that UTPs in agricultural supply chains are very costly. However, the evidence base is limited, and additional data are needed on the cost of UTPs in other countries, including developing countries, and for key commodities and different stakeholders along the chain. Currently, direct regulation of UTPs in business-to-business relationships in agricultural supply chains remains rare outside the European Union, Japan and the United Kingdom of Great Britain and Northern Ireland. In other countries, these are addressed through competition law, contract law or trading acts and other types of policy instruments. Evidence on the cost of UTPs and how well direct regulation can protect suppliers will help countries assess the merit of implementing similar approaches.

---

Cite this content as:

Language English

---

Also available in:

• Spanish

---