Food supply chains regularly come under the spotlight of political measures in the context of farmers’ incomes. Market interventions aimed at ensuring fair contractual relationships within the supply chain and preventing any potential abuse of market power always carry the risk of distorting competition – including at the expense of those market participants who are actually intended to be protected. They should therefore be based on a clear factual basis.
At a glance
The Monopolies Commission recommends that any intervention in agricultural markets or food supply chains aimed at strengthening farmers’ market position should be undertaken only with caution and on the basis of clear facts:
- The structures of the food supply chain in Germany show signs of potential competition issues and market power.
- Various instruments for regulating these markets are already in place; some of these have only recently begun to take effect, and their full implications have not yet been conclusively established.
- A final assessment will be subject to a more detailed review.
