HDE Urges Caution Against Amendments To Agricultural Organisations And Supply Chains Act

By Dayeeta Das
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HDE Urges Caution Against Amendments To Agricultural Organisations And Supply Chains Act

The German Retail Association (HDE) has warned against hasty decisions on calls to amend the German Agricultural Organisations and Supply Chains Act (AgrarOLkG).

In February 2024, the European Commission advised against short-term measures and interventions in the agricultural markets and food supply chains to avoid distortions of competition that could also affect agricultural producers, the HDE noted.

"The legislator should take the recommendation of the Monopolies Commission's experts seriously," said the managing director of the HDE, Stefan Genth.

The HDE noted that it is critical of the interventions in contractual autonomy in the supply chain that came into force in 2021.

'Loss Of Prosperity'

"The European requirements of the so-called UTP Directive are already capable of restricting competition in the supply chain and are therefore associated with the risk of loss of prosperity," Genth added.


The association believes that the restrictions on private autonomy and competition imposed by the AgrarOLkG should under no circumstances go beyond the level specified by European law in the future.

Regulation beyond the EU requirements is of no use to farmers, but strengthens the market position of the food processing industry, it added.

'Withdraw Unnecessary Regulations'

Genth explained, "Even in view of the illegal practices of international food companies that came to light in connection with the Mondelēz case, the legislature cannot have any interest in strengthening the market position of companies that uninhibitedly pursue their profit orientation at the expense of consumers."

"With a view to consumer welfare, we, therefore, call on the legislature to withdraw unnecessary regulations in the food supply chain instead of following poorly founded particular interests and wishes of individual industries to improve their profit situation at the expense of consumers," he added.

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