The legislative text laying down the framework of relations within the agri-food sector was definitively adopted by the Senate Thursday.
by
Industrial and distributors will have to respect new rules of the game in their commercial negotiations that begin. The legislative text laying down the framework of relations within the agri-food sector was definitively adopted by the Senate Thursday, October 14. The issue of this bill of the member of Parliament The Republic (LRM) Grégory Besson-Moreau, called Egalim 2, is eminently political, with an entry into force just before the presidential election of 2022. It must concretize the commitment Taken by Emmanuel Macron to ensure a better remuneration of farmers. This promise was already at the heart of Equalim voted in 2018, but did not give the expected results.
“There are real subjects of satisfaction in the text. The compromise found suits us,” says Richard Panquiault, Director General of the Consumer Business Liaison Institute (ILEC), armed arm of large groups. Indeed, one of the crucial points of the discussions was none other than “transparency”. In fact, Law EGALIM 2, imposes written and multi-year contracts between the producer and his first buyer. This cost of agricultural raw materials is then sanctuarized in the negotiations between the manufacturer and the distributor.
But, the initial idea was to ask the industrialist to present the details of its costs of agricultural raw materials entering the composition of its product to justify its rates. It was hardly the taste of companies that argued from business secrecy.
Framed logistical penalties
Finally, the legislative text leaves three options to the industrialist, the indication of the prices of each agricultural raw material, or the indication of the aggregate price of all commodities, the use of a third party of trust to certify its price. This rate is the same for all distributors.
In addition, the large distribution must justify the cost of each of the services it will ask the industrialist (catalog participation, promotion, room space …). As for the logistical penalties, suffered by companies in case of delay or default, they are framed. Similarly, that negotiations on distributor brand products (MDD).
Finally, companies have tariff revision clauses in case of fluctuations in agricultural courts, but also energy, transportation or packaging prices. In case of dispute, a commercial dispute settlement committee will be constituted to decide. “With EGALIM 1, the amount of 10% recovery of the loss resale threshold [that is, the price limit below which a distributor can resell a product] was a check given to the distributors. EGALIM 2 is a rebalancing in favor of the industry, “says Panquiault.
You have 54.8% of this article to read. The rest is reserved for subscribers.