Retail and wholesale in the agri-food supply chain

 

 

The retail and wholesale sectors play a vital role in the EU agri-food chain, ensuring that consumers have access to safe, high-quality, and affordable food. These sectors connect millions of consumers with food manufacturers and farmers, forming an essential link between food production and consumption.

Both large and small retailers and wholesalers source products directly from farmers, small and medium-sized food producers, and global food manufacturers. The nature of their negotiations varies widely depending on the size and scale of the businesses involved; for example, a retailer’s negotiations with a local farmer, e.g. to supply a local store, will differ greatly from those between a major retailer and a global manufacturer.

Explore more about how the EU agri-food chain functions and the commercial relationships between retailers, wholesalers, and their suppliers on this webpage.

Retail & Wholesale in the agri-food value chain

The agri-food supply chain

 
The agri-food chain is a multifaceted system involving numerous stakeholders, including farmers and their suppliers, the food processing industry, logistics and transport providers, international traders, hospitality businesses, and retail and wholesale operators. Each actor plays a critical role in moving food from the farm to the consumer, ensuring quality and safety at every step.
Understanding the functioning of the agri-food chain also involves exploring how prices are formed at each stage and the dynamics between different players. From the costs incurred by farmers and producers to the final price paid by consumers, multiple factors influence pricing, including production costs, market demand, transportation, and negotiations between suppliers and retailers.

The material below sheds light on the agri-food chain and its functioning. 

The future of the agri-food ecosystem

We took part in the Commission President’s initiative to launch a Strategic Dialogue on the future of agriculture.

Retailers and wholesalers are partnering with farmers to move to a sustainable food system and thrive in the green transition. Find out more here: Farm to Fork – EuroCommerce

They are making the journey to becoming emissions net-positive, driving change in the whole value chain.

We are collaborating with supply chain partners to:

  • reduce Scope 3 emissions;
  • increase biodiversity and sustainable offerings;
  • reduce packaging and waste across the chain, and increase re-use and recycling;
  • nudge consumers and business customers towards more efficient and sustainable consumption.

Find out more here: 

Trading practices

The EU regulates relations in the agri-food supply chain in the Directive on unfair trading practices – up for revision in 2025. Most EU countries also have additional rules at national level.

We call for a balanced approach which protects farmers from abuses but does not disrupt the Single Market and interferes with negotiations between larger retailer and larger suppliers.

Find out more here: 

More information

European Commission

The future of the agri-food ecosystem

Trading practices