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French Ministers of Agriculture and Industry bring the sector together to ensure a balance of trade relations

In a time of economic recovery, the French government controls the effective application of the EGalim law for a better distribution of value in the food chain and has asked the sector to make proposals for value creation.

7/29/2020

Fruits and vegetables in a French supermarket.

Julien Denormandie, French Minister of Agriculture and Food, and Agnès Pannier-Runacher, minister delegated by the Minister of Economy, Finance and Recovery, in charge of Industry of France, gathered yesterday the representatives of agricultural producers, processing industries and distributors as part of a trade relations monitoring committee. More than ever in a time of economic recovery, the French Government continues to mobilize on the effective application of the EGalim law to ensure a rebalancing of trade relations and a better distribution of value throughout the food chain. Ministers demand that all stakeholders, in all sectors, be held accountable.

This third committee meeting since the beginning of the year made it possible to take stock of the sector after the health crisis.

At all stages (production, processing, distribution), the different links in the chain have been able to resist and adapt to the limitations induced by confinement, which has allowed guaranteeing the continuity of supplies and avoiding a slippage in sales prices. to customers. French ministers praised the spirit of responsibility shown by all groups during this period, essential for the resilience of a population of almost 70 million people.

Regarding the balance of the trade negotiations for the year 2020 compared to previous years, the ministers noted the calm of the negotiating climate and the progress in terms of distribution of the value observed in sectors directly linked to the agricultural sectors. However, it is clear that the results are not yet up to expectations in terms of value distribution, although the momentum is there.

Certain subsequent difficulties have also arisen with the crisis, to which we must respond before the resumption of the 2020-2021 campaign of discussions. Therefore, in terms of trade relations, in the post-crisis management, the recent recommendation of CEPC2 (Commission for the Review of Business Practices) should be taken into account, to which the Government will be very attentive, especially in terms of logistical sanctions.

In an uncertain economic context, the ministers recalled that the DGCCRF's control services will continue in 2020 to make compliance with the EGalim law one of its priority areas of work, in particular: with respect to the counterparties with which the Distributors meet their requests for tariff deflation, the repercussion of variations in the price of certain raw materials, the consideration of the qualitative commitments of suppliers and the practices of central purchasing organizations, particularly international ones.

The negotiations that will begin at the end of 2020 will benefit from a new tool with guidelines related to the implementation of three indicators that the EGalim law plans to take into account in contracts related to agricultural and food products, and which has just been published by the DGCCRF. It will help professionals to improve the effectiveness of a better distribution of the value enshrined in the law.

In addition, the ministers recalled the importance of mediation and announced the mobilization of the CEPC to identify the actions that will be carried out in the framework of the negotiation of contracts related to private labels.

Finally, they asked all stakeholders to come up with new value creation initiatives around, for example, the development of short circuits, product traceability or the evolution of labeling to improve information for consumers.


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