This is one of the main complaints expressed by the unions. “Fair remuneration is essential to promote the work of farmers and give them perspectives and clarity about the future,” insist the FNSEA and the Young Farmers in a press release published Wednesday. “This long-standing problem must find its answer in the full and complete application of the Egalim laws and their state of mind by building the price forward,” they add.
The two unions, which presented the government with a list of demands in line with the mobilizations organized over the past week and the anger of the farmers, are therefore targeting several pieces of legislation. However, the latter had the objective of allowing a fair level of remuneration for the profession, by supervising negotiations between farmers and the mass distribution sector. While they are due to end at the end of January, “it is urgent to enforce the law”, say the unions.
Laws from the States General of Food
In detail, the law “for the balance of commercial relations in the agricultural and food sector and healthy, sustainable and accessible food for all”, known as Egalim 1, was promulgated in November 2018. It was created following the General States of Food announced by Emmanuel Macron in 2017, when concerns related to the level of income of farmers were already emanating.
This consultation, which brought together stakeholders in the agricultural and food sector, resulted in the establishment of several objectives, including “equitable distribution” of the value created and the desire to “enable farmers to live with dignity from their work through payment of price”. It was then a question of limiting the downward pressure on prices from large-scale distribution, accused of playing on an unequal basis in the face of producers forced to sell their products at lower costs.
This first text therefore contains several measures governing commercial negotiations, and introduces a new logic of “forward” negotiation, in other words based on farmers’ production costs, and not the prices offered by distributors. State controls are also put in place during periods of price discussions.
Measures deemed insufficient
But the measures introduced by the Egalim 1 law fail to dissipate tensions. A year after its promulgation of the law, the Senate thus published a report stating that “the account is not there”. The text thus notes that “the balance of power remains [e] in favor of large-scale distribution” and that “the Egalim law in no way guarantees the farmer an income covering at least his cost price”.
To try to improve the situation in the agricultural sector, legislators will therefore return to the charge and two “Egalim” laws will follow, in October 2021 and March 2023. The Egalim 2 law thus introduces an automatic price revision mechanism, based on the production costs and market prices, and formulates a principle of non-negotiability of raw material prices. As for the latest Descrozaille law, also called Egalim 3, it allows deliveries to be interrupted in the event of failure of negotiations with distributors.
Difficulties in times of inflation
Despite the entry into force of the texts, criticism is still being heard about their effectiveness. Many elected officials thus point to the non-compliance with the provisions by mass distribution players, who continue to exert downward pressure on prices, which has repercussions on farmers’ income.
“Certain” distributors “deny the principle of non-negotiability of the price of agricultural raw materials and refuse to recognize the increase in production costs,” criticizes Agricultural Cooperation. “The price war waged by certain distributors is to the detriment of the content of the French’s plate,” insisted the union, in a press release published on X.
Faced with the mobilization of farmers, the government took up the subject: the Minister of the Economy and Prime Minister Gabriel Attal affirmed that controls on the negotiations would be strengthened. You must be able to live from your work,” declared the head of government to a farmer. “Starting next week, the General Directorate for Consumption and Fraud Control (DGCCRF) will increase controls on commercial negotiations underway to ensure the preservation of the income of agricultural producers”, assured Bruno Le Maire. “We will be intractable with distributors who will not respect the provisions of the Egalim law”, he added .