Agricultural Show: "Major distributors do not respect the EGalim law", denounces the president of Ania, the agri-food association

Trade negotiations between producers and the French mass retail sector are unlikely to calm the agricultural anger that has already been well expressed in 2024. While the dialogue is still very tense, the arrival at the agricultural show of five bosses of the French mass retail sector - those of Carrefour, Intermarché, Système U, Auchan and Casino - for an unprecedented meeting with farmers, at the initiative of Karine Lemarchand - the star presenter of the M6 ​​group and friend of farmers - should revive the debates around the remuneration of producers. The various groups have already announced initiatives to support farmers. " A communication operation ", denounces Jean-François Loiseau, president of Ania, the main agri-food association that represents almost all of the 20,000 companies in the sector.

franceinfo: Do ​​you think that large-scale distribution is restoring its image among farmers?

Jean-François Loiseau: Be careful with communication operations! We have to see reality as it is. Between an agricultural product and a food product, there is what is called a processing and valorization chain. The agricultural product - you mentioned animal products, cereals, beetroot or other soil products - they have to go through a processing tool. We need processing if you want to offer consumers yogurts, for example: between the liter of milk and the yogurt, there is a small factory that will do a job, and this job must be paid at a fair price. Because, at the moment, this is not the case.

"The distributor-farmer operation is not the real reality."

Jean-François Loiseau, President of Ania

franceinfo

Tensions are running high in these trade negotiations, which end on Saturday. Where are we in these negotiations?

As we speak, they are not finished, and they are very tense. Whatever the segments of companies: large companies for example, we think that they can swallow everything, absorb everything, but that is wrong. Small, medium and large companies are caught in the same straitjacket: that of a few distributors. There are 20,000 of us, as you mentioned. I represent 20,000 companies: they are family-owned, they are international, they are cooperatives.

"Faced with these 20,000 companies, there are some distributors who put pressure on us, and who do not respect the EGALIM laws, in particular that of fixing agricultural prices."

Jean-François Loiseau, President of Ania

franceinfo

The Egalim law, which guarantees better remuneration for farmers. We are already at three laws, the last one having been promulgated in 2021.

This is normal. We must preserve farmers' income if we want a strong agricultural world for processing factories. But I would like to say it: distributors today are taking our companies outside of France, to other countries to negotiate commercial conditions. While agricultural products are purchased in France, the factories are in France, the regulations are French and the products will be sold in France. And we are asked to go and negotiate in Spain because it would be simpler and above all easier. These are the famous large European purchasing centers.

French mass distribution does not respect the law?

But that's exactly it. Large-scale distribution does not respect the law on fixing the raw material harvest - that is an essential point -. And it does not respect the law because it wants to take us internationally by explaining to us that there are European rules that allow it. I regret it: we need to have a little common sense, a little national awakening, in the name of food patriotism. If we want to do business in France, the rules of trade must be made on French territory. Why crush once again the factory price, the agricultural and agri-food prices of the factories, when for 15 years, we have been suffering far too much deflation?

Do you agree with the President of the Republic who, during the inauguration of the show, stated that work was underway to reform the pricing structure, and that the Egalim law is insufficient? A new one is needed?

It's a bit of a French problem: yet another law to try to put everyone on the same level of discussion... But France is the only European country where trade negotiations are going badly. Of course, it's a power struggle and that's normal. But at some point, even distributors say it: we have to create value. Because if I don't create value for my suppliers, especially manufacturers, they're going to close their factories and I won't be able to sell my local products.

The consumer who is listening to us is wondering if he is going to pay more for his products in the coming weeks? Are you able to tell us this evening?

What we can say is that in 2024, food inflation was negative, that is to say that prices fell. It is clear that there are prices of agricultural raw materials that have not changed. But besides that, there are wages that are increasing, packaging, decarbonization issues that we do not talk about, issues related to AI, training, or even attractiveness in the territories. This means that depending on the sectors, there will be either stagnation or small increases. Because the pressure, I repeat, from distribution is unparalleled.

Depending on certain agricultural products, there could be developments that are very low. But I allow myself to say it, it will not be enough to ensure the sustainable sustainability of our companies: out of the 20,000 companies, 98% are SMEs, VSEs.