Competitiveness Up, Market Share Down for EU Producers
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A new special report from the European Court of Auditors highlights a structural paradox at the heart of the EU’s fruit and vegetables sector: producer organisations benefit from substantial EU funding that strengthens their competitiveness, yet their overall market presence and membership continue to decline. The report, which accompanies this article, provides a detailed assessment of how uneven national support, complex EU rules and limited policy responsiveness are eroding the long term viability of these organisations.
Producer organisations were created to help farmers collectively navigate rising production costs, volatile market demand and increasingly stringent quality requirements. Through joint sales, shared investments in equipment and infrastructure, and coordinated production planning, they offer farmers a way to improve profitability and negotiate better terms with buyers. Despite these advantages, membership has fallen sharply — down 39 % between 2012 and 2023 — while the organisational rate of the sector has been decreasing since 2017.
EU financial support remains significant. In 2023, producer organisations received €1.06 billion in funding, used to modernise equipment, automate production processes, reduce energy and water consumption, obtain costly certification schemes, improve packaging and logistics, and develop consumer recognised quality labels. Because EU support is linked to marketed production value, organisations are incentivised to increase turnover and align production with market demand. Yet even with these tools, most organisations remain in a weaker bargaining position compared to large retailers, except in countries such as Belgium and the Netherlands where producer organisations have achieved substantial scale.
The report also reveals stark disparities between member states. Some countries have no recognised producer organisations at all, while organisational rates range from 0.8 % in Slovenia to 86 % in Denmark. These differences stem from historical cooperation patterns, national policy choices and varying levels of administrative engagement. In some member states, authorities actively support producer organisations through guidance and flexible eligibility rules; in others, restrictive frameworks and limited involvement discourage participation and reduce access to EU funding. This uneven landscape creates distortions within the single market and undermines the policy’s effectiveness.
Although the European Commission has identified many of these challenges, the report notes that recent policy updates — including the 2023 2027 CAP and the 2025 simplification package — have not addressed the core issues. Additional environmental and research requirements introduced in recent years have increased administrative burden and financial risk, making participation less attractive. The Commission’s proposal for the 2028 2034 CAP removes some spending obligations but risks further fragmentation by allowing member states wide discretion over co financing rates.
Agriculture remains a critical pillar of the EU economy, contributing €532 billion to GDP in 2024, with fresh fruit and vegetables accounting for €80 billion of output. With 1,488 recognised producer organisations and 187,372 members, the sector has significant potential — but unlocking it requires clearer policy direction, simpler rules and more consistent national support.
The special report 22/2026, “Producer organisations in the fruit and vegetables sector – Fertile ground for competitiveness if carefully tended”, is attached and provides the full analysis, data and recommendations shaping the future of the EU’s fruit and vegetables market.
