Research for agri committee - food value chain in the EU - how to improve it and strengthen the bargaining power of farmers
The food supply chain plays a substantial role in the European economy, connecting sectors such as agricultural, food processing industry and distribution that together make more than 5% of European value-added and 7% of employment. Furthermore, all European consumers are directly affected by EU food supply chain performance since food and beverage account for a significant part (14%) of the average European households’ expenditures (EC, 2015). The EU food system is evolving rapidly. Changes in the organization of international trade, technology, and in society’s needs are triggering a deep restructuring of the agro-food supply chains. E-food and convenience retail, food customization, food quality, safety and identity are just few examples of the challenges that agro-food firms are facing. The increasing competitiveness and social pressure foster innovation in the organization of the agribusiness. As a consequence, the food supply chain is a complex series of inter-related markets (with increasing forms of coordination, integration and contracts).