Ohana Enters a New Sector: A Primer on EU Agri-food Policies in 2024-2029

The way we produce and consume our food is changing, and it will need to undergo even deeper transformations if we are to meet the EU’s environmental and climate goals. To that end, Ohana is now expanding its scope to collaborate with the agri-food industry in accelerating the sector’s green transition.

In this blog article, my aim is to offer a broad explanation of the intricate policy landscape of this sector, starting with an analysis of what the 2024-2029 EU mandate will mean for agri-food.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

Expanding Ohana’s Scope Towards Agri-food

While you may know Ohana as a reference in public affairs when it comes to the textile industry, we have been expanding our scope to other sectors. We are now collaborating with the agri-food sector, which has been particularly impacted by the triple planetary crisis — climate change, biodiversity loss, and pollution.

The need to create socially responsible, economically profitable, and environmentally sustainable agri-food systems is more than urgent. The question of how to get there will continue to be a matter of heated debates in the new EU legislative term of 2024-2029, so you can expect many more pieces on this topic here at the Ohana blog.

To begin with, let’s get an overview of what these next five years might look like for those in agri-food, and the most impactful upcoming policies, which warrant special attention.

EU Agri-food Sector: What to Expect from the New Mandate

As the new European Commission takes shape, several key documents are already setting the tone for the future of EU agriculture and food policy. Ursula von der Leyen’s political guidelines, the Strategic Dialogue on the Future of EU Agriculture (released in September 2024), and the mission letters to Commissioners-designated give us a glimpse of what’s to come.

Farmers and rural areas face significant challenges, including the impact of climate change, fluctuating energy prices, and trade uncertainties. At the same time, excessive bureaucracy, low incomes, and unsustainable practices in the agri-food sector must be addressed. The Vision for Agriculture and Food, which will be presented by the new Commission in its first 100 days, is expected to outline how long-term competitiveness can be achieved within the planet’s environmental boundaries.

Finding the Right Balance: Incentives, Investment, and Regulation

One of the key takeaways from von der Leyen’s political guidelines is the promise to support the entire food value chain through investment and innovation. The Agriculture and Food Commissioner is tasked with working with Member States and banks, such as the European Investment Bank (EIB), to leverage private capital to support the sector’s sustainability goals.

In parallel, the Strategic Dialogue on the Future of EU Agriculture calls for the establishment of a temporary Agri-food Just Transition Fund. This fund would provide one-off loans or grants to help farmers and other stakeholders invest in sustainability. However, it remains to be seen how these initiatives will be funded, as competing priorities are likely to put pressure on available resources.

The EU Water Resilience Strategy

Scheduled for development in the next mandate, the EU Water Resilience Strategy is a comprehensive framework designed to enhance the resilience of water systems across Europe amid climate change and other environmental challenges.

As we know, water availability plays a crucial role in supporting flourishing agri-food systems. While overall water consumption has decreased, competition for water resources is intensifying, and some agricultural practices continue to over utilise these precious resources. The Water Resilience Strategy aims to address these issues by emphasising sustainable water management to ensure availability, quality, and accessibility while promoting ecosystem health. It will include measures to combat water scarcity, pollution, and flooding, advocating for integrated management practices that involve various stakeholders such as local communities and industries.

The EU Unfair Trading Practices Directive

The EU Unfair Trading Practices Directive is a regulatory framework aimed at protecting smaller and weaker trading partners in the agri-food supply chain from unfair practices by larger businesses. Adopted in 2019, the directive establishes a list of prohibited inequitable trading practices, such as retroactive changes to contracts, late payments, and unilateral contract modifications, ensuring well-balanced and more transparent trading relationships.

A review of the Directive is scheduled for 2025 under the leadership of the Commissioner for Agriculture and Food. The revision should introduce further measures to ensure that farmers are fairly compensated, eliminating the need for them to systematically sell products below production costs, and creating more transparency around agri-food profits.

The EU Public Procurement Directive

Adopted in 2014, the EU Public Procurement Directive (PPD) is a policy designed to streamline and enhance public procurement processes across Member States, ensuring that public contracts are awarded transparently, fairly, and efficiently.
Last spring, the European Council adopted conclusions calling on the European Commission to evaluate the need to revise the PPD. While sustainable public procurement would not be a major focus of this revision, there is potential for adding mandatory sustainability criteria. The Strategic Dialogue on EU Agriculture, for example, suggests a framework for increasing sustainable food procurement based on environmental, social, and economic standards, which could significantly impact the agri-food sector.

The EU Waste Framework Directive

Food waste is a major issue in the EU, with significant amounts of food being wasted at every stage of the supply chain. To address this, the EU Waste Framework Directive is undergoing a revision, which will introduce binding food waste reduction targets for member states by 2030. The revised directive will establish goals for retail, processing, manufacturing, and even households.

While the trialogue discussions are likely to move slowly and be concluded under the Council’s upcoming Polish Presidency, the agri-food sector will certainly have to take significant steps to reduce food waste across the value chain. This means adopting more efficient production methods, minimising waste during processing, and implementing strategies to recover and repurpose excess food.

On top of reducing waste, the new Commissioner for Health and Animal Welfare will also be tasked with proposing actions to enhance the sustainability and affordability of food production, including organic methods and bio-controls. The letter to the Commissioner does not include a new EU Action Plan for Plant-Based Foods called for by the Strategic Dialogue on the Future of EU Agriculture by 2025, but this topic will likely be difficult to avoid in the coming legislative term.

Other Policies to Watch

In addition to the policies directly targeting the agri-food sector, several cross-sectoral regulations will also require the industry’s attention.

Notably, the Forced Labour Ban Regulation, Deforestation Regulation, Corporate Sustainability Reporting Directive, and the Corporate Sustainability Due Diligence Directive will all significantly impact agri-food businesses, demanding compliance with sustainability requirements across their supply chains. Other policies relevant for agri-food that we will unpack in new articles.

The 2024-2029 mandate, while being the so-called “implementation mandate”, will still bring a number of sustainability policy proposals, both directly aimed at agri-food and with a broader scope. On top of proactively adjusting business strategies and practices, EU companies and their partners are advised to monitor and engage in the policymaking process, helping to shape the outcomes of these new and ongoing initiatives.

If you have questions about the policies mentioned in this article, or any other aspect of EU sustainability legislation, get in touch! Our experts are ready to guide you through all of these challenges and set up your business for success in this green transition.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

Join our newsletter to keep up to date with the latest news and information coming out of the EU.