An Irish MEP has said that there is "clear evidence" of unfair trading practices operating in the food supply chain in the EU.

Speaking at a meeting of the European Parliament Committee on Agriculture this week, Ireland Midlands--North-West MEP Ciaran Mullooly called for "urgent action" to address disparity between farmgate prices and retail profits in the European food supply chain.

Mullooly highlighted the need for fair trading practices and increased transparency in pricing, emphasising that there is currently no mechanism in place for farmers to recover escalating costs.

Based on a report from the European Commission, Mullooly said: "This is clear evidence of unfair trading practices operating within the supply chain. Farmers are the weakest link, and the prices being paid are a glaring example of the exploitation of farm families.

"The report presented a stark example of price discrepancies, noting that while farmers may receive as little as 40c/kg for their potatoes, supermarkets can charge up to €2.40/kg. Such low prices for farmers are putting their livelihoods in jeopardy," he added.

According to the Independent Ireland MEP, there is evidence of such unfair trading practices "every week".

"The slice for the farmer gets smaller and smaller, but today we have evidence that the profits, after trading costs are taken into consideration, are growing while the farmers' margin gets smaller all the time," Mullooly said.

According to the MEP, officials from the European Commission acknowledge this problem, particularly for small to medium-sized farmers "who are under significant pressure".

Mullooly called on the commission to take appropriate action, citing European Commission President Ursula von der Leyen, "commitment to maintaining the family farm structure throughout Europe".

Mullooly went on to say that there was an interconnection between food and energy costs, which have escalated.

"Higher energy prices lead to higher prices of fertiliser, diesel, and other energy-initiative products required, resulting in lower affordability for farmers, especially for farm products with lower profit margins," he said.

"Yet we have also been told that consumer prices are rising in many areas in Europe, thanks to the over-influence of food traders, and this must be brought to a stop," the MEP added.