The observatory will show prices, margins and value added in the supply chain in the Member States
The European Commission has launched a call for applications to establish the EU Food Chain Observatory (AFCO). The creation of this observatory, which will look into production costs, margins and trade practices, was announced in mid-March.
The point of the observatory is to ensure increased transparency of the pricesthe cost structure and distribution of margins and added value in the supply chain, while respecting confidentiality and competition rules.
The observatory will bring together up to 80 members representing national authorities responsible for agriculture, fisheries and aquaculture or the supply chain of foods, as well as organizations representing interested parties active at different stages of the chain – from farmers, raw material suppliers, food industry, traders, to transport, logistics, retail and consumers. In the medium term, it is expected that the work of the Observatory will allow the development of methodologies for the evaluation and monitoring of the structure of costs and the distribution of margins and added value along the food supply chain.
The existing agri-food data portal will be expanded to publish new relevant indicators available to all online. This may include data on costs and margins at the various stages of the food chain. This new observatory will complement the work of the existing market observatories for agriculture and fisheries.
Members will also exchange information on trade practices positively or negatively impacting the smooth functioning of the supply chain. Case studies of specific products or sectors may also be shared.
The call for applications is open until May 13. Applicant organizations must be registered on the Transparency Register to be appointed. The Observatory is expected to hold its first meeting in July 2024, chaired by the Directorate-General for Agriculture of the European Commission. The observatory will meet at least twice a year in plenary sessions, and if necessary, additional ad hoc meetings on specific topics will be organized. In accordance with the principles of transparency, all relevant documents (including the agenda and minutes) will be published in the register of expert groups. The observatory will have an initial term of five years, renewable.
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