Ensuring Fairness in the Agrifood Supply Chain: The EU Directive on Unfair Trading Practices

The European Union has taken a firm stance against unfair trading practices in the agricultural and food supply chain through Directive (EU) 2019/633. This Directive aims to protect farmers, farmers’ organizations, and other vulnerable suppliers from exploitative practices imposed by more dominant buyers. It prohibits 16 specific unfair trading practices and establishes clear enforcement mechanisms to uphold fairness across all Member States.

Key Principles of the Directive:

✔ Protection for Weaker Suppliers – Safeguarding farmers and agrifood suppliers against unfair business dealings.
✔ Strong Enforcement Mechanisms – Each Member State is required to designate an authority responsible for enforcing the Directive.
✔ Coordination & Oversight – Authorities collaborate at the EU level to ensure consistency and effectiveness.
✔ Flexibility for Stricter National Rules – Member States may introduce even stronger protections beyond the Directive’s scope.

 
Unfair Trading Practices
 
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The “Step Approach”: Fairness Based on Financial Strength
The Directive employs a proportional “step approach” that considers the financial scale of operators. It sets clear turnover-based thresholds to determine the level of protection, ensuring that smaller suppliers are not subjected to unfair business tactics by financially stronger buyers. Buyers as well as suppliers may access form ‘Evaluation of UTP’ to identify criteria for which it is believed that an unfair trading activity took place.
 
Access the ‘Evaluation of UTP’ Form Here
 
Size of enterprise by turnover
Implementation in Malta: Subsidiary Legislation 117.42
Malta has fully transposed and implemented Directive (EU) 2019/633 through Subsidiary Legislation 117.42 – Unfair Trading Practices in the Food Supply Chain Regulations. These regulations apply to unfair practices affecting the sale of agricultural and food products, including services related to suppliers and buyers based in Malta.
 
Ten Black Unfair Trading Practices
 
 
The appointed Unfair Trading Practices (Agriculture and Fisheries) Board has the role of the enforcement authority.  Its members represent the agriculture, fisheries and aquaculture departments​ (sectoral authorities), the commerce department and have expertise in the market and trading practices field relating to agriculture and fisheries.   Presiding over the Board proceedings is an advocate with professional experience and a registrar assisting the Board with the responsibility of all relevant documentation and communications. 
 
Six Grey Unfair Trading Practices
 
 
 
Enforcement Authority in Malta

The Unfair Trading Practices (Agriculture and Fisheries) Board serves as the official enforcement body, overseeing the implementation of the regulations and ensuring compliance.

Board Members:

• Dr. Carlos Buhagiar (Chairperson)
• Mr. Marco Dimech (Member)
• Mr. Gilbert Balzan (Member)
• Mr. Neil Zammit (Member)
• Ms. Louise Cesare (Member)
• Mr. Kriss Debono (Secretary to the Board)

This Board comprises sectoral authorities from agriculture, fisheries, and aquaculture, as well as market experts with deep knowledge of trading practices. An advocate presides over proceedings, supported by a registrar managing documentation and communications.


Reporting Unfair Trading Practices

Suppliers and buyers who wish to report unfair trading practices may do so through the sectoral authority or directly to the Unfair Trading Practices (Agriculture and Fisheries) Board by submitting a formal complaint.

How to File a Complaint:

1️. Fill in the ‘Claimant’s Form’
2️. Submit via Post:

Mr. Kriss Debono
Secretary to the UTP Board
European and International Affairs Directorate
National Agriculture Research and Development Centre
Luqa Road, Qormi


📧 Or send a scanned copy via email to:
➡ [email protected] (cc: [email protected])

📌 Processing Timeline: The Board will acknowledge receipt, provide updates, and communicate investigation outcomes within 20 working days.
📌 Complaint Fee: A €50 processing fee applies for each submission.

For further inquiries, contact the Unfair Trading Practices (Agriculture and Fisheries) Board at [email protected].

 
 
 

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