Brussels pushes for shorter supply chains and sustainability

The European Commission is drawing a clear line: local and sustainable must become the new standard. Member States will be required to prioritise products with added societal value in their agricultural schemes. This is set out in legislative proposal COM(2025)553, part of the post-2027 agricultural policy reform.

Priority for products that truly add value

In their plans, Member States must create room for products that contribute to climate goals, improved animal welfare or social policy. Not as a loose recommendation, but as a firm directive.

Think of organic products. Or food with a low carbon footprint, sustainably packaged, or produced by farmers who go beyond legal animal welfare requirements. Products from short supply chains or small-scale farmers also qualify. Fairtrade? That’s eligible too.

The Commission explicitly names these kinds of criteria in the proposal. They apply to EU school schemes, among others, but also to other market interventions.

Not an option, but a legal obligation

What you might expect to be advisory will soon be enshrined in law. Member States will have to include these preferences in their National and Regional Partnership Plans (NRPs). These are the plans that will determine agricultural subsidies from 2028 onwards.

According to the Commission, this will contribute to a more sustainable food system, and to fairer opportunities for producers who consciously invest in added value.

Impact on supply chains and contracts

What does this mean in practice? Procurement rules and subsidy flows may start to shift. Think of government or institutional tenders that increasingly demand specific origins or production methods. Businesses already working with local chains or sustainable practices could benefit.

That is, provided their products fall within the right categories and meet the applicable quality standards. Enforcement will remain in the hands of Member States. But the direction is clear: Brussels no longer sees sustainability as the exception, it is becoming the rule.

Read the full legislative proposal.