More money for the growers

France wants to put an end to price wars

The French Government is preparing a bill that aims to put an end to the current price war between supermarkets and ensure growers receive more money, as reported by the National Federation of Agricultural Operators (FNSEA), the sector's main union in the country.

Its president, Christiane Lambert, stated in an interview at "BFM TV" that promotions will not be prohibited, but limits will have to be set.

"Minimum prices will be set, below which distributors won't be able to market those products," said Lambert, who denounced that "everyone is helping push prices down and that current discounts are market-disrupting.

This bill is expected to be introduced by late January and the parliamentary process will last between three and four months.

The newspaper "Le Figaro" pointed out that this regulation aims to limit both the extent of the price reductions and the percentage of products that can be subject to promotions.

"One free item for every three bought is acceptable, but not buy one and get one free," Lambert said to give an example.

The law also wants to push the deadline for distributors and processors to renegotiate their rates from one to two months in case of significant changes in the availability of raw materials, as well as for prices to be set based on the prices at origin.

One of the concessions to distributors, according to the newspaper, is to increase by 10% the minimum below which they can be considered to be selling at a loss.

The representative of the union recalled that agriculture accounts for 14% of all direct and indirect jobs and stressed their willingness for it to be recognised as a large economic sector in the country.


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