Producer organiza­tions lose members and market share

On paper, the idea is compelling: growers pool their supply, share investments, and negotiate collectively with buyers. In many EU countries, however, the reality is more challenging. Producer organizations are losing ground, while large retailers continue to hold the stronger position. Even substantial EU support has not changed that picture. The European Court of Auditors assessed whether the support improved competitiveness and made membership more attractive. The Netherlands holds a notable position within this European landscape.

Membership declines

Between 2012 and 2023, the number of member farmers fell by 39 percent. Producer organizations also lost market share. Larger organizations can offer greater volumes and a wider product range. This puts them in a stronger position when negotiating with large buyers.

In many member states, however, producer organizations are too small or not well known enough. According to the European Court of Auditors, uneven national support and complex EU rules hinder their development. The European Commission did not take sufficient action to address these issues.

EU support for investment

In 2023, producer organizations received €1.06 billion in EU support. The funding went toward modernizing equipment and automating production. They also invested in energy and water conservation, quality certifications, packaging, and logistics. In addition, the organizations developed quality labels recognized by consumers.

The support is linked to the value of marketed production. This gives organizations an incentive to increase sales and align production with market demand.

The Netherlands and Belgium stand out

The Netherlands and Belgium are the only countries where producer organizations are economically significant. Elsewhere in the EU, the differences are substantial. The share of production marketed through these organizations varies widely. It ranges from 0.8 percent in Slovenia to 86 percent in Denmark. Some member states have no recognized producer organizations at all.

National rules and support also vary. Some authorities actively advise organizations and allow funding for a wide range of measures. Other countries apply stricter rules or provide less support. According to the auditors, this creates an uneven playing field. This can discourage farmers from joining an organization. It can also deter them from submitting an operational program for EU funding.

Eca.europa.eu