The commercial relations monitoring committee, which brings together representatives of agricultural producers, processing industries and distributors, held a meeting on December 18. Stake : the distribution of value between suppliers and distributors in the context of the end of the crisis.
While the annual cycle of trade negotiations for 2021 (from December 1, 2020 to March 1, 2021) is in progress, the conclusion is unanimous about discussions which remain difficult. In the meeting, where negotiations between suppliers and distributors must end at the end of February, the pressure is just as strong to reach agreements satisfactory to all parties. In a city, the food chain held up during this crisis but it is weakened by the lack of outlets, the costs incurred and the increase in raw materials. In this singular context, the government, by the voice of Julien Denormandie, Minister of Agriculture and Food, and Agnès Pannier-Runacher, Minister of Industry, calls for "the responsibility and commitment of distributors in trade negotiations which have started at the national level on degraded bases". The government asks that the spirit of the General Assembly on food be respected "for a fairer distribution of the value : agriculture should not be the adjustment variable ". The national agricultural and agro-food sector is suffering from the current crisis marked in particular by the very sharp reduction in certain outlets (restoration, event, export, etc.). This situation also occurs in a marked context, in a large number of sectors, by the increase in the cost of raw materials.
Responsible spirit
The ministers call on the responsibility of distributors to take better account of production costs by reversing the contractual proposal and using indicators in contracts. "It would be incomprehensible if the rise in production costs were not duly taken into account in the negotiation. Distributors are expected to undertake to demonstrate a spirit of particular responsibility in negotiations, especially for raw products and first processing products. "" All means will be used to ensure that the law is respected "they say. This is how, at their request, the DGCCRF remains strongly mobilized, by strengthening controls, to enforce the so-called Egalim food law, voted three years ago, aiming to guarantee an effective rebalancing of commercial relations and a better distribution of value between partners. During the 2020 trade negotiations, the control services of the DGCCRF interviewed several hundred suppliers in order to follow "in real time" the progress of these negotiations and the integration of the elements of the law, in particular the use of cost indicators. Controls by the DGCCRF also focused on the supervision of promotions in value. Administrative sanction procedures are launched, including in the case of promotional advantages on loyalty cards circumventing legislation on promotions.
Controls and sanctions
The year 2020 was also marked by four administrative fines (for a total of about 10,6 million euros), notified by the DGCCRF to various major retail brands for non-compliance with the March 1 date for signing the 2019 agreements with their suppliers. This action was strongly dissuasive since for 2020 the agreements not signed by March 1 were very marginal.. Proceedings for restrictive business practices are also pending before the Paris Commercial Court. Logistics penalties are also investigated to identify abuse and, if applicable, correct them, if necessary using the new power of injunction under penalty conferred on DGCCRF agents by Law No. 2020-1508 of December 3, 2020 known as DDADUE. Finally, the practices of international centers are subject to sustained vigilance and, where appropriate, appropriate actions. In 2021, the vigilance of the DGCCRF on these various points will remain sustained. otherwise, the ministers recalled that the law on the acceleration and simplification of Public Action (ASAP) of December 8, 2020 made it possible to extend the experiment on raising the threshold for resale at a loss and the supervision of promotions and took into consideration the requests of economic actors with regard to the supervision of promotions in value (art. 125 of the law).
Ideas for the future
The first conclusions presented by Serge Papin, to whom a mission has been entrusted relating to the application of the Egalim law, chart paths for the future. A tool to provide transparency has been proposed. This tool could first be tested for certain sectors : it could serve as much of support for the mediator in his agricultural trade negotiations as for the various links in the sector to objectify the value brought back to the farm gate. Serge Papin also pleaded for multi-year negotiations, already permitted by law. A working group will be set up to explore this subject in depth, likely to pacify negotiations and set up virtuous medium-term partnerships along the food chain. Ministers finally welcomed the recently completed work of the Trade Practices Review Commission (CEPC) making recommendations on best practices for private label products. They want the work initiated under the aegis of the National Consumer Council on the labeling of the origin of processed foods and their ingredients to continue.
