Article 101 of the Treaty on the Functioning of the European Union (TFEU) generally restricts agreements between companies that could negatively impact competition, such as those leading to higher prices or reduced output. However, within the agricultural sector, Article 210a of Regulation 1308/2013 offers an exception for certain restrictive agreements. This exception applies when such agreements are essential for achieving sustainability standards that go beyond what is mandated by EU or national legislation. 

The Guidelines for sustainability agreements of agricultural producers provide detailed insights on how stakeholders in the agri-food sector can craft joint sustainability initiatives that comply with Article 210a.

The Guidelines specifically outline that the exclusion is applicable only to agreements involving agricultural producers or partnerships between these producers and other participants in the agri-food supply chain, such as suppliers, distributors, transportation, and packaging entities. It clarifies that agreements not involving agricultural producers or those unrelated to agricultural products are not eligible for this exclusion. 

Only sustainability objectives related to environmental protection, pesticide use reduction, antimicrobial resistance, and animal health and welfare qualify under the guidelines. This means that agreements solely pursuing economic or social sustainability goals, such as fair wages for farmers, are not covered by the exclusion.

Furthermore, to benefit from the exclusion, parties to an agreement must establish and adhere to sustainability standards that exceed existing legal requirements, if even slightly. These standards must be indispensable to achieve the sustainability objectives, implying that the agreement must include any restrictions on competition needed to reach these objectives. For instance, producers could agree on financial arrangements to offset additional costs or provide incentives for adopting these higher standards. However, excluding goods or operators from other Member States is generally not considered indispensable for achieving these sustainability goals.

The Guidelines also define the scope for competition authorities to intervene after the implementation of sustainability agreements. Should such agreements result in unreasonable price increases for consumers or lead to the elimination of products with significant demand, competition authorities retain the right to step in, requiring modifications or cessation of the agreements to ensure they do not adversely affect the market or consumer interests. 

• Guidelines on the exclusion from Article 101 of the Treaty on the Functioning of the European Union for sustainability agreements of agricultural producers 

• Regulation (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products

• Article 101 of the Treaty on the Functioning of the European Union