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The full conclusions of the far-reaching series of debates on the regulation of agri-food markets launched following President Macron’s election in May are due next month, but he already highlighted a number of decisions at a recent event at the Rungis wholesale market outside Paris.
“We will change the law to reverse the way prices are set, starting from the cost of production,” President Macron said. “Ending the price war will put a stop to the continued devaluation of farmers’ income and allow them to earn a living again from their work.”
Prices ‘abnormally low’
He aims to introduce and pass legislation in the first half of next year to impose three- to five-year supply contracts with minimum pricing based on production costs.
This will include a higher threshold triggering restrictions on below-cost selling for food products, he announced. “When food is permanently on special offer, it no longer has any value and prices lose their meaning,” he said.
“Prices have become abnormally low.”
He urged retailers and processors engaging in an annual round of price negotiations next month to factor in upcoming legislation, adding that future regulations would include naming and shaming businesses engaging in unfair trading practices.
It is no longer possible to have one third of France’s farmers earning less than €350 per month
President Macron added that this should ensure farmers earn a living from fair prices rather than payments. “It is no longer possible to have one third of France’s farmers earning less than €350 per month,” he said.
In exchange for legislative change and a €5bn investment package for farmers also due next year, President Macron said the agri-food industry would have to re-organise.
Farmers will be encouraged to join producer organisations to negotiate with processors and retailers, with some farm payments becoming conditional upon participation in a large and well-structured group.
Organic production
He also warned of increasing environmental and animal welfare requirements, including a stronger industry commitment to developing organic production.
In the pigmeat and poultry sectors, he warned that lower-quality products competing with Brazil or Russia on world markets would have to be discontinued, while the 0.5% share of organic production in the French pigmeat sector needs to rise to meet domestic demand.
He also re-stated his support for a gradual replacement of glyphosate by other herbicides and set a target of 2022 to allow only free-range eggs in the country.
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