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Abstract
In the last years European farmers have been facing two new phenomena: the
asymmetric price transmission in agro-food sector and the decrease of agricultural value
added. The European Commission denounced low transparency in trade relationships
and frequent unfair commercial practices between firms and recognized the imperfect
functioning of the agro-food supply chain.
Economic theories consider contracts as means coordinating entrepreneurs’
decisions (e.g. times, quantity and quality of products, prices). Nevertheless, in some
cases buyers may use them to improve and exercise their market power, for instance
imposing vertical restraints. That is a typical situation in the European food supply
chain, where highly concentrated sectors use their bargaining power against farmers.
During that time antitrust authorities and EU Member States have sought to
solve the situation by appropriate competition policy measures. The law No. 27/2012 of
24 March 2012 introduced in Italy new mandatory rules regarding contracts of sale of
agriculture and food products, aimed at increasing transparency in trade and shortening
terms of payment.
Thanks to an holistic multiple-case study accomplished by interviews and direct
observations, the article analyzes the effects that new rules caused in the Italian agrofood
system.