The role of any food system, by virtue of its historic intent, is to serve the end consumer. Farmers, commodity traders, food processors, and retailers alike respond to the demand of consumers. As is common in economics, supply follows demand. However, in past years we have experienced a trend in policy-making that seeks to interfere in both the demand, and even more directly, in the supply side of the equation. For instance, subsequent policy strategies have sought to increase the role of the organic food sector, despite organic produce representing a mere fraction of the overall market. For consumers, it would not necessarily change much – ultimately they get to choose at retailers whether they prefer products derived from organic or conventional production. However, growers get caught in a gamble over steering policy of supply : if consumers do not buy the targeted amount of organic produce, growers will be left hanging, and price-intensive investments can bankrupt their businesses.

For consumers to get an accurate representation of their needs, we need farmers and retailers to stand on solid financial ground, and for them to respond to demand only. Increasing toolboxes for farmers to diversify their crops, crop protection, and seed variety, guarantees they can make the best decisions for their business. Interventions in the negotiations between farmers and retailers, through floor pricing, means that consumers will end up with higher food prices and lower supply. 

It is safe to say that consumers are rightfully confused over the real price of food. On the one hand, retailers fight for the lowest possible prices while maintaining realistic margins for themselves. Farmers fight for higher wholesale prices, but simultaneously are made dependent on direct payments through the Common Agricultural Policy, which increasingly also adopts steering policies. This system creates a lack of transparency, and distorts the reality of prices. The real price of a cucumber is no longer a question of what is displayed in a store, but of a multitude of layers of government intervention, many of which are co-financed by tax paying consumers. 

As the European Union, we should strive for a fair marketplace that considers fairness also for allied trade partners. The success of the Single Market needs to be extended with free trade policies that open our agricultural sector to fair competition from other markets and continents. This will not only improve Europe’s geopolitical and diplomatic standing with those countries, but also increase choice for consumers. We should allow European farmers to adapt to that reality by deregulating what we see as a currently overregulated profession.