Technical study on the application of a European ban on purchasing below the cost of sustainable production

Ensuring a fair standard of living for farmers has been a core objective of the European Union’s Common Agricultural Policy since its inception. Yet many farmers continue to face low incomes and unfair trading practices, often forced to sell their products below production costs while facing rising input expenses. 

While the 2019 EU Directive on Unfair Trading Practices marked an important step in protecting farmers from abusive commercial behaviour, it does not address the practice of purchasing agricultural products below their sustainable production cost. Although a range of public and private initiatives has emerged to address these imbalances, farmers are increasingly calling for stronger EU-level action that goes beyond voluntary schemes. 

This study examines the legal basis for introducing a European ban on the purchase of agricultural and food products below their sustainable production cost. Drawing on national experiences and recent developments in EU law, it proposes a practical framework for designing and implementing such a prohibition, with the aim of strengthening farmers’ position in the food supply chain, ensuring fair remuneration, and supporting the transition towards more sustainable agricultural production.