New sustainability compensation for fruit and vegetables

Stichting Milieukeur (SMK) has been given the green light by the Authority for Consumers and Markets (ACM) to introduce a sustainability compensation for fruit and vegetable producers. This decision follows a thorough review of SMK’s request, with a focus on the impact of the compensation on competition and consumer prices.

Compensation for sustainability costs

SMK’s plan involves buyers paying producers with the On the Way to PlanetProof label (OPP Label) a compensation. This payment covers the additional costs of sustainable production. The initiative removes the financial uncertainty that producers face in meeting the label’s requirements, making it more feasible for farmers to operate sustainably. The ACM sees no reason to believe that this arrangement will harm competition. Price increases for consumers are expected to be minimal, which strengthens the foundation for the initiative.

Regulation within competitive frameworks

The ACM has confirmed that the sustainability compensation fits within existing competition rules. This means that its introduction is legal and will not have negative effects on the market. Producers and supermarkets retain the freedom to independently set their prices, where the compensation only forms a small part of the overall cost structure.

Strengthening collaboration

The ACM further highlights opportunities for farmers to strengthen their market position through collaborative efforts within the agricultural sector. With the updated Guideline on Farmer Collaboration in January 2024, the ACM provides clear guidelines for setting up joint sustainability initiatives. This guideline invites the sector to further develop sustainable practices and to seek legal clarity from the ACM in case of any doubts.

Acm.nl