A fair and well-functioning food supply chain is a core strategic interest of the EU.
The EU agri-food chain Observatory (AFCO) seeks to provide insights into how the agri-food supply chain functions, with a focus on improving price transparency and a better understanding of cost structures as well as how margins and added value are distributed. Its work respects confidentiality and complies with competition rules.
Announced in March 2024, AFCO is part of the EU’s efforts to strengthen farmers’ position in the food supply chain and build trust among all actors involved.
Overview
In early 2024, in response to the concerns expressed by farmers and other actors of the agri-food chain, the European Commission presented a reflection paper on the Commission's package of support to EU farmers proposing measures to improve the position of farmers in the food supply chain. One of the key measures was the creation of the AFCO, focused on monitoring production costs, margins, and exchanging information on trading practices.
Members of the AFCO were selected via a public call for applications. The first meeting of the group was held on 15 July 2024 and opened by Commissioner Janusz Wojciechowski.
A key aim of the Observatory is to build trust among all actors across the agri-food supply chain, as well as with EU public authorities. which is essential to ensure all actors are fairly remunerated for their contributions and work in the agri-food supply chain.
In this spirit, the AFCO’s main objectives are to:
- Exchange information and develop a shared understanding of issues affecting the food supply chain.
- Increase transparency on costs and margins within the chain.
- Provide expertise and identifying trading practices and contractual arrangements that may positively or negatively impact the chain’s functioning.
In the medium term, the AFCO will work to create methodologies and indicators to assess and monitor cost structures and the distribution of margins and added value.
The AFCO relies on contributions from its members and the work of the Commission's sectoral market observatories to fulfil its objectives.
Structure and members
The AFCO is an informal group of experts, bringing together up to 80 members. The AFCO members represent national authorities from EU countries responsible for agriculture, fisheries, aquaculture, and the food supply chain. Members of the group also include organisations representing stakeholders from all stages of the supply chain – including farmers, input providers, the food industry, traders, transport, logistics, retailers, and consumers.
The members of the AFCO are listed hereunder.
| Name of organisation | Category | Area represented |
|---|---|---|
| Aquaculture Advisory Council (AAC) | Other organisations | European |
| Committee of the Regions (CoR) | EU Institutions/Bodies | European |
| European Economic and Social Committee (EESC) | EU Institutions/Bodies | European |
| European Food Forum (EFF) | Other organisations | European |
| European Parliament - Secretariat of the Committee on Agriculture and Rural Development (COMAGRI) | EU Institutions/Bodies | European |
| Farm Europe (FE) | Academia, Research Institute and Think Tanks | European |
More information about the activities of the AFCO can be found in the Register of Commission Expert Groups.
Related links
Information on the milk, meat, sugar, and crops market observatories which were established to cope better with market volatility and read market signals.
Governing of the agri-food supply chain, how to strengthen farmers' position in the supply chain.
