Dutch certifying organization Stichting Milieukeur is allowed to introduce a sustainability fee for farmers
Dutch certifying organization Stichting Milieukeur (SMK) is allowed to introduce a sustainability fee for fruit and vegetable producers with the certification label On the Way to PlanetProof (OPP Label). This is the conclusion of the Netherlands Authority for Consumers and Markets (ACM) after SMK had asked ACM to test the initiative against the competition rules. The fee has a sustainability objective, and will have little to no influence on consumer prices in the supermarket. SMK is now able to make arrangements with supermarkets.
Fee for sustainability costs
SMK is the independent manager and owner of the OPP Label. SMK wishes to introduce a scheme in which buyers will pay producers of products with the OPP Label a fee for the sustainability costs. For many producers, it is not clear if and, if so, to what extent they are compensated for production under the OPP Label. This initiative takes away that uncertainty. As a result, producers can produce (or continue to produce) under the OPP Label. This helps towards fulfilling the desire for a better business model for sustainable farmers, which is a widely shared desire among lawmakers and members of the public.
ACM comes to the conclusion that the sustainability fee is not likely to restrict competition. That is why the introduction of this sustainability fee is allowed under the competition rules. The fee also has a clear sustainability objective. Moreover, consumer prices are not likely to go up appreciably as a result of this fee. Farmers and supermarkets will continue to be free to determine their own prices. Furthermore, the fee is only a small part of the price.
Collaborations between farmers with regard to sustainability initiatives
The competition rules offer the agricultural sector additional opportunities for strengthening the market positions of farmers through collaborations. In January 2024, ACM revised the Guidelines regarding collaborations between farmers. These guidelines contain important opportunities for farmers to set up sustainability initiatives in accordance with the competition rules. With these guidelines, ACM seeks to help promote more-sustainable production and trade in agricultural products. When unsure about the legal assessment of their sustainability-related collaboration plans, market participants are invited to submit these plans to ACM.