EU’s two-tier crop rules could reshape food sourcing and labeling

For F&B companies already navigating cost pressures, climate risks, and shifting consumer expectations, New genomic techniques (NGTs) represent a new tool — and a new layer of complexity — in the future of food production. The NGT discussion has intensified following the EU Council’s adoption of the new rules.

The EU is in the final stages of approving its new framework for NGTs, which would introduce a two-tier system for gene-edited crops across the bloc. Once approved, the rules will be published and enter into force after a transition period, marking a major shift in how gene-edited plants are regulated in Europe. 

Industry impact

While the new framework opens the door to faster innovation and more resilient supply chains, it also introduces fresh challenges around sourcing, labeling, and market positioning.

NGTs are modern breeding methods that modify the genetic material of plants, animals, or microorganisms to create, enhance, or reduce specific traits. Developed after the EU’s 2001 GMO legislation, they enable changes to DNA more quickly and precisely than conventional breeding or earlier genomic techniques. 

Like traditional methods, they can be used to improve nutritional value or increase resistance to disease and environmental stresses, such as drought or flooding.

NGTs are newer breeding approaches that enable targeted changes to the DNA of plants, animals, or microorganisms to influence specific characteristics.

Two-tier system for NGTs

The sticking points center on how the regulation distinguishes between two NGT categories, which have now been created.

Category 1 (NGT-1): This category covers plants deemed equivalent to those produced through conventional breeding. Their status will be verified by national authorities, after which subsequent generations will not require additional assessment.

NGT-1 plants and derived products will not be subject to general labeling requirements, with the exception of seeds and other reproductive material. This ensures operators can still maintain NGT-free supply chains where needed.

Some guardrails do remain in place. Despite the more flexible approach, the framework retains clear limits. Certain traits, such as herbicide tolerance and the production of known insecticidal substances, are excluded from the NGT-1 category, ensuring they remain under stricter oversight.

Category 2 (NGT-2): This category includes plants with more complex genetic modifications that go beyond changes achievable through conventional breeding. As a result, they remain fully subject to existing EU GMO legislation, including authorization procedures, traceability requirements, and mandatory labeling.

Member states retain the right to opt out of cultivating NGT-2 crops within their territory and may introduce coexistence measures to limit their unintended presence in other products and supply chains.

Easing biotech rules

By creating a differentiated pathway for NGT-1 crops, the EU is signaling a partial shift away from its historically stringent stance on biotechnology.

F&B companies may need to assess supplier exposure to NGT-derived ingredients, review sourcing and labeling policies, and prepare for increased segmentation in supply chains. 

Effectively, the new rules will create two parallel regimes inside the same supply chain, and companies have to map where they sit in each.

“Our farmers need practical solutions to adapt to climate change and remain competitive. These new rules give them access to innovation while ensuring clarity, fairness, and high standards across the EU,” says Maria Panayiotou, Minister of Agriculture, Rural Development and Environment of the Republic of Cyprus.

The text still requires formal adoption by the European Parliament. Once approved, it will enter into force 20 days after publication in the Official Journal of the European Union, with most provisions applying after a 24-month transition period. The new framework is expected to take effect from mid-2028.

The new rules would provide a framework to enable faster innovation and climate-resilient crops, according to the European Council.

Mixed reactions

Opponents of the legislation claim that the EU is effectively creating a new regulatory lane for NGTs, distinct from traditional GMOs. While the EU argues it opens the door to faster crop innovation cycles and reduces the regulatory burden for certain products (NGT-1), some stakeholders are concerned that it signals a shift in how gene-edited crops will enter the F&B supply chain.

Ildem Esin, senior campaigner at Ekō — a non-profit campaigning organization that focuses on corporate accountability and consumer advocacy — tells Food Ingredients First that yesterday’s outcome means the EU wants new NGTs to be excluded from existing labeling requirements. 

“It’s incredibly disappointing to witness, again, how the EU decision-makers disregard the rights of its citizens and ignore the demands of over hundreds of thousands of people.”

“During the early stages of the legislative process, the European Parliament originally called for continued labeling of new GMOs. However, this position was not upheld in the final trilogue negotiations in December 2025, where key provisions on labeling were deleted.” 

“By removing labeling requirements, it opens new and lucrative market opportunities to big businesses. The draft text will be submitted to a plenary vote in the European Parliament in the week of May 18, 2026. The coalition and millions of people across Europe will keep fighting for their rights as consumers and citizens to have a choice in what they buy and eat,” adds Esin.

On the other hand, Farm Europe and Eat Europe have welcomed the Council’s adoption of the new rules, saying they are key to enabling innovation needed to address climate change, rising pest and disease pressures, water resilience, and the reduction in available crop protection products.

The organizations say the agreement supports the path toward sustainable intensification, enabling European agriculture to produce more and better, while laying the foundations for a resilient and increasingly carbon-neutral economy in which agriculture is part of the solution.

“NGTs are very much needed, and farmers are ready to exploit their full potential. We cannot afford further delays or setbacks with incalculable consequences in terms of both environmental and economic sustainability and the competitiveness of European farmers in the global market,” says a statement from Farm Europe.

Thor Gunnar Kofoed, chairman of Copa-Cogeca’s Working Party on seeds, says: “This agreement is a game changer for European agriculture. NGTs can help farmers adapt to changing conditions while supporting sustainable production and food security in the EU.”