The EU agri-food chain Observatory (AFCO) seeks to provide insights into how the agri-food supply chain functions, with a focus on improving price transparency and a better understanding of cost structures as well as how margins and added value are distributed. Its work respects confidentiality and complies with competition rules. 

Announced in March 2024, AFCO is part of the EU’s efforts to strengthen farmers’ position in the food supply chain and build trust among all actors involved.

In this spirit, the AFCO’s main objectives are to:

• Exchange information and develop a shared understanding of issues affecting the food supply chain.
• Increase transparency on costs and margins within the chain.
• Provide expertise and identifying trading practices and contractual arrangements that may positively or negatively impact the chain’s functioning.

The AFCO is an informal group of experts, bringing together up to 80 members. The AFCO members represent national authorities from EU countries responsible for agriculture, fisheries, aquaculture, and the food supply chain. Members of the group also include organisations representing stakeholders from all stages of the supply chain – including farmers, input providers, the food industry, traders, transport, logistics, retailers, and consumers.

Related legislation:

Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.