Is the price war between farmers and manufacturers coming to an end? The former boss of System U Serge Papin delivered this Thursday, March 25 a report on the upgrading of farmers to Julien Denormandie and Agnès Pannier-Runacher, respectively Minister of Agriculture and Minister Delegate for Industry. In this text, which could lead to a new law, he believes that taking into account the cost of agricultural raw materials must become ” non-negotiable “ in the fixing of prices between farmers, manufacturers and distributors.
In particular, it recommends that a multi-year contract be established between the farmer and the industrialist who will transform his products (bakery, butcher, etc.) from a non-negotiable floor price. This is to avoid a price war relaunched each year and which rarely ends to the advantage of farmers. “Agriculture is the weak link” of the system, stressed Serge Papin on Franceinfo on Wednesday.
Why helping French farmers is a necessity
For the former boss of U stores, the EGalim law of 2018, which was to rebalance the balance of power between farmers and manufacturers, has not kept its promises and does not go far enough.
A fairer system for farmers
Today, the price of food products is set by negotiations between distributors and manufacturers, regardless of what the farmers ask for. Certain breeders in particular are forced to sell at a loss. All the more so as they see their production costs soar with the surge in the price of cereals used in the ration of animals.
It could change. The Minister of Agriculture, Julien Denormandie, has shown himself determined to end the annual negotiations on food prices. “We must change the rules”, he said on RMC this Thursday.
The minister clarified that he would propose to amend the law: “We have to move to multi-year contracts with review clauses. This requires making certain modifications, I undertake to make them and to carry them so that they are adopted. “
A floor price for products
” The price will be constructed from the price of the agricultural raw material, and not the other way around ”, hopes Serge Papin on Franceinfo. The mention of the price of the agricultural raw material will avoid abuse during other levels of negotiation.
Julien Denormandie confirmed on RMC his ” goal ” establish a floor price for products defined on the basis of their production cost. It remains to be seen whether the measures put forward by Serge Papin and heard by the Minister of Agriculture will really turn into new law.