Thursday, June 27, 2019
Home Entertainment The looters of large retailers more aggressive than ever

The looters of large retailers more aggressive than ever

While the President of the Republic has already participated in several debates with elected officials, representatives of associations and even young people to "sell" the government's policy to the French, a first assessment will soon be possible concerning the promises he made. made on October 11, 2017 to farmers and agribusiness companies in Rungis regarding the formation of prices. Declaring on that day for "the establishment of a renewed contract with a contract that would be proposed by farmers and no longer buyers," the President of the Republic had also said: "We will change the law to reverse this construction of the price which must be able to start from the production costs ".

Negotiations between central purchasing departments and their suppliers to decide prices and volumes of products that will be referenced in supermarkets from March end February 28 while the Salon de l ' Agriculture will have opened six days earlier. But this Wednesday morning, fifteen days from the end of trade negotiations, the National Association of Food Industries (ANIA) publishes a revealing title: "In 15 days, if nothing changes, the States General Food will be well and truly buried! ".

For 96% of suppliers the situation is not better or even deteriorated

In support of this alarmist title, the ANIA press release writes: "Based on the feedback of more than 450 companies of all sizes (95% of SME-ETI) and all sectors, the observation of the ANIA Negotiations Observatory is without appeal. 96% of the companies surveyed believe that the situation with their retail customers is not better or even deteriorated compared to last year. Buying at ever lower prices remains the only leitmotif of distributors, regardless of the quality of the product, regardless of the steps taken with respect to agricultural upstream, regardless of the cost of raw materials ".

In the "bargaining box" between distributors and their suppliers, the ANIA indicates that "the reality turns out this year as terrible as in previous years: demands of systematic price reductions of large retailers against companies food, pressure, blackmail, ray threats for your products if you do not accept the cuts imposed … and already the report of first by-pass of the law that has just been implemented ", accuses the ANIA.

What will the follow-up committee say today?

This law was passed on October 2, 2018 and a follow-up committee for its implementation is to be held today, organized by the Minister of Economy Bruno Le Maire in the presence of Didier Guillaume, Minister of Agriculture. For them, Richard Girardot, President of ANIA, declares: "We fought at the General States of Food, with one goal: to recreate value. The announcement effects of certain sectors are the tree that hides the forest. By continuing their market share and their race to ever lower prices, distributors are dragging the entire industry in a destructive spiral. We must put an end to these aggressive purchasing policies of large retailers that increasingly weaken the food chain. We have 15 days left, otherwise the Egalim Law will not have been used to build and the spirit of the States General Food will not survive, "laments the president of ANIA.

His comments are largely justified by the result of a survey of 453 companies, the following are the main conclusions: "Nearly half of the companies surveyed still have no visibility on their business plans for 2019, just 15 days from the end of the negotiations. Of these same companies, only 9% believe that they have achieved their goals. 77% of companies report requests for systematic price reductions. 71% of companies that have made requests for price increases justified by increases in the cost of agricultural raw materials say that these increases have not been taken into account. 88% of companies that have contracted with farmers say that these steps are not taken into account. 68% of the respondents were victims of dereferencing or threats of dereference, aiming at forcing them to yield to pressure. 72% of respondents believe that distributors only partially or very little respect the provisions of the Promotion Framework Ordinance ".

There was a perverse "and at the same time" in Rungis' speech

Everything seems to indicate that the President of the Republic has passed by his majority of deputies godillots a law that he himself wanted to make inapplicable. For there was also in Rungis' speech a revealing paragraph of the "and at the same time" of which it is now necessary to measure all the perversity:

"But," said Macron, "this new approach will not be enough because it will only be effective if farmers are truly grouping themselves into producer organizations to put more weight in bargaining over bargaining by taking advantage of the possibilities of competition law. (…) And as true as I wish the state takes its responsibilities, I tell you, you must also take your responsibilities and group yourself much more easily, much more massively around these organizations of producers ".

Saying this, Emmanuel Macron erased the fact that the distributors, but also the processors, can, in a Europe of the free movement of products without the least customs tariff, import enough to influence the prices to the production by reducing the demand on the produce produced in France such as fruits and vegetables, meat and dairy products. From then on everything seems already to indicate that the law voted on October 2, 2018 was a vast deception.

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