The majority agricultural union alliance formed by FNSEA and Jeunes Agriculteurs warns against “any recommendation which would contribute to unraveling EGAlim” and calls for “urgent legislative adjustments” in order to strengthen the provisions of this law supposed to protect farmers’ income, according to a press release published on Saturday.
While the government plans to present “by the summer” a new text of law to “strengthen the Egalim system” (supposed to protect farmers’ income, Editor’s note), the FNSEA and Jeunes Agriculteurs “warn against any recommendation which would help to unravel EGAlim, and remind the Government of its commitment to French farmers.”
Four times less than requested
The publication on May 14 of the results of the Commercial Negotiation Observatory (ONC) shows “a worrying gap between the price increases initially requested by suppliers (+4.5% on average, due to the increase in manufacturing costs). global production) and those which were actually negotiated (+1% on average)”, by the agri-food manufacturers, underline the two unions in their press release.
The Commercial Negotiation Observatory (ONC) brings together professional organizations representing manufacturers (ANIA, FEEF, ILEC and LCA) and major retail brands (FCD), under the leadership of the agricultural commercial relations mediator Thierry Dahan.
An annual rite
“The diagnosis made by the mediator confirms what the FNSEA and Jeunes Agriculteurs have forcefully expressed since the start of the agricultural mobilization initiated last November: the income of farmers is threatened by the persistent difficulties in the application of the EGAlim laws”, state – they warn, emphasizing that it “cannot be an adjustment variable” “It is necessary to make urgent legislative adjustments in order to strengthen the provisions of the law” EGAlim, they add, demanding that they are “operational” by the “next trade negotiations”.
Every year, commercial negotiations take place between agri-food companies (from small charcuterie producers to giants Unilever, Nestlé or Coca-Cola) and their supermarket clients (E.Leclerc, Carrefour, Intermarché or Système U). They must agree on the conditions of sale for a large part of the products sold in supermarkets the rest of the year. The purchase price by supermarkets from manufacturers, the place allocated to products on the shelves and a possible promotional calendar are thus decided.
Negotiations usually end on March 1, but they were brought forward this year by the government, which hoped that wholesale price reductions for certain foods would be reflected more quickly on the shelves, after a period of high inflation.