Unfair trading practices (UTPs) in business-to-business relations within agricultural supply chains have become an increasingly urgent concern amid trade liberalization, the vertical integration of agri-food systems, and disruptions caused by various natural and geopolitical factors. The concentration of market power at both upstream and downstream levels—coupled with structural and institutional failures—has amplified bargaining power imbalances among national and international actors within these chains. Practices such as delayed payments, unilateral contract modifications, and shifting costs to suppliers without consent undermine equity, operational efficiency, and innovation, while imposing significant economic burdens.

The impact of UTPs on farmers in developing countries has received little attention, but when present, such practices are likely to compromise farmers’ financial stability, limit access to quality inputs, and hinder compliance with international standards. The resulting economic vulnerability is compounded by social issues such as gender inequality, labor informality, and rural poverty. Additionally, environmental consequences—emerging as resource exploitation increases and resilience to climate change declines—restrict producers’ ability to compete on equitable terms and effectively capture value from their integration in global value chains.

Recognizing the need for more evidence and research in this area, FAO has begun to investigate the issue of UTPs and the multidimensional challenges they pose, to support evidence-based policymaking and the formulation of best practices. FAO’s analysis also highlights emerging soft-law instruments adopted in various jurisdictions. These efforts reflect FAO’s commitment to fostering more inclusive, efficient, resilient, and sustainable agri-food value chains worldwide.