Equitable Value Distribution in the Food Supply Chain through the CAP

Farmers play the main and most crucial role in the agri-food supply chain. Without them, it is impossible to ensure food security in Europe and beyond. Yet a paradox remains: today many farmers do not receive a fair share of the gains generated by their work, as a significant part of the added value is captured by other stages of the chain, such as processing, marketing and retail. As a result, farmers – especially small and medium-sized ones – often struggle to make a living, facing high production costs, limited bargaining power, intense market competition and, in some cases, unfair trading practices.

For this reason, the European Union and its Member States are taking active measures to address these imbalances, with one of the key objectives of the Common Agricultural Policy (CAP) for the 2023–2027 period being to strengthen farmers’ position within the agri-food supply chain. The CAP does this by assisting farmers in forming producer groups, cooperatives and producer organisations. Through collective action, farmers can increase their bargaining power and secure fairer terms for their products.

At the same time, the CAP supports farmers who wish to move beyond primary production and become involved in later stages of the agri-food supply chain by investing in processing and adding value to their products. Through targeted investment support, farmers can increase their income and enhance their economic resilience.

In parallel, the European Union is working to bring greater transparency and fairness to agricultural markets. The CAP complements this effort by offering farmers opportunities for education, training and advisory services. This ensures that they are better informed about how markets function and about their rights, while also fostering innovation in the agricultural sector. As a result, farmers are better equipped to strengthen their negotiating position, adapt production to consumer demand and protect themselves from market pressures and unfair trading conditions.

In this way, the CAP demonstrates in practice its commitment to providing concrete support for European farmers, making it clear that the goal is not only productivity and competitiveness, but also the fair distribution of value and profits to the people who keep the agri-food sector alive every day through their work and commitment. A fair agri-food system means balance, transparency and respect for all actors along the supply chain.