The French parliament has passed legislation introducing a reference to farmers' production costs in minimum food pricing.

The new law states that any contract for the sale of agricultural products must "take into account one of several indicators relative to agricultural costs". However, lawmakers stopped short of defining what those indicators are, asking farmers, processors and retailers to set them through negotiation.

The law also authorises the government to set new rules on promotions and below-cost selling. An industry forum convened by President Emmanuel Macron last year agreed to raise the below-cost selling threshold for food products by 10% and stop aggressive promotions. The government has committed to limiting promotions on food products to a maximum discount of "three for two", as opposed to "two for one" currently.

The legislation also doubles penalties for animal welfare offences and forces pesticide sellers and advisers to operate as separate businesses. Government canteens, including those feeding all French schoolchildren every day, will have to purchase half of their ingredients from organic, local or quality-assured sources by 2022.

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