Reuters reports that President Emmanuel Macron – during a meeting at Rungis international food market in Rungis, near Paris – has called for changes to France’s food chain on Wednesday to ensure that farmers, who have been hit by squeezed margins and a retail price war, are paid fairly.
Macron said that he supported a new type of contract, based on farmers’ production costs
In common with Farmers for Action (NI) which has joined a producer organization (Farm Groups) he is proposing a change in legislation – ‘a new type of contract, based on farmers’ production costs, which would require stronger producer organizations and a change in legislation’.
Prices are currently defined by buyers tempted to pressure prices, leaving many farmers unable to cover their costs.
The changes are part of a wide field-to-fork review promised by Macron during his presidential campaign as a third of farmers, an important constituency in French politics, earned a third of the net minimum wage.
Macron endorsed a proposal from the workshops to create a reversed contract starting from farmers, to food processors and to retailers. This would ensure a better spread of added value along the chain.
Just Food adds: “He promised to shake up the current “balance of power” between producers, food processing firms and retailers. A tougher line would be taken on low prices and discounting and a higher loss-leader threshold for retailers established, Macron underlined . . .
“Legislation will be prepared early next year reversing the current system of food pricing. In future, prices will be calculated on the basis of production costs instead of being imposed by retailers”.