The long-planned ombudsman for fairness between farmers and retailers is due to go into operation in the course of the year. “We are in the final vote,” said Agriculture Minister Elisabeth Köstinger (ÖVP) at a press conference. This still has to be coordinated with the Ministry of Economic Affairs and the coalition partner. According to Köstinger, a decision has not yet been made as to where the independent and instruction-free position is to be located.
The Minister of Agriculture had announced a farmers ombudsman in November 2018, a little later this was also fixed in the Council of Ministers. Farmers, producer organizations and companies should be able to anonymously report unfair business practices. The Ibiza scandal in May 2019 and the associated end of the ÖVP-FPÖ government brought the project to a standstill. The corona crisis also delayed the implementation of the position.
Part of an EU directive
Low producer prices and the market power of grocers have long been a hot topic among farmers in Austria. The supermarket chains have consistently denied allegations of unfair business practices. Pig and cattle farmers are currently struggling once again with low prices, this time due to the corona crisis and the loss of sales in restaurants and shops.
The ombudsman is part of an EU directive that must be implemented in national law by May 1st. The office should then publish an annual report, including on the number and type of cases. This is to show problems in the industry.
Furthermore, the expansion of the food origin labeling is planned this year. In the government program, the ÖVP and the Greens have committed to mandatory labeling of the origin of the primary ingredients milk, meat and eggs in public and private communal catering (including canteens) and in processed foods from 2021. The domestic food industry has always been critical of the plans of the first turquoise-blue and now turquoise-green federal government to introduce labels of origin for processed foods. Agriculture Minister Köstinger, the Chamber of Agriculture and the Farmers' Union are pushing for the plans to be implemented. “The health minister should finally take action,” said the President of the Austrian Chamber of Agriculture, Josef Moosbrugger, at the online press conference. One lesson from the corona crisis is that regional products are in demand by customers, said Bauernbund boss Georg Strasser.
The Ministry of Health is currently examining the possibility of expanding labeling. “Food labeling is largely regulated by a European framework (in the Food Information Regulation – LIMV). This leaves only a very limited national scope,” the ministry said at the request of the APA. That is why the Ministry of Agriculture has commissioned an expert opinion that explores the possibilities for action at the national level. “This report is now available and is being evaluated. We are currently working on pouring the conclusions into a concrete legal framework,” said the Ministry of Health. This will then be sent to Brussels for notification after a “timely coordination” with the Ministry of Agriculture.
