France to link food prices to farmers’ cost of production

The French president Emmanuel Macron wants to shake up the food sector and ensure producers are price setters rather than price takers.

The plans, which are part of the president’s ambitions to address the imbalance of power in the food sector, are aimed at returning more money to farmers.

Under his plans, the starting price in negotiations would be set by farmers, so food prices could better reflect the cost of production.

French farmers, as in the UK, have borne the brunt of an intense supermarket price war over the past few years, which have contributed to squeezed margins.

See also: Leaked EU report raises prospects of subsidy capping

In France, there is a minimum price at which certain food products can be sold by retailers – this would be raised under Macron’s proposals.

However, according to foodnavigator.com, the president said he was not offering the food industry a blank check to raise prices.

What do farmers think about the plans?

British and American farmers responded. Some were positive…

Revolutionary concept for farming? Being paid the real cost for production, but real question is what is real cost of food?

— Mark Palmer (@systems4food) October 20, 2017

I’d welcome that here in the states. Stop letting the government subsidize losses an slept the consumer pay the farmer.

— The Hippie Farmer (@TheHippieFarmer) October 20, 2017

Can I answer with a french cartoon? (But hope and believe Macron can make it work, also in other areas he tries to be disruptive) pic.twitter.com/PAZT2bokLZ

— Ignace Lootvoet (@IgnaceLootvoet) October 20, 2017

The just price! – means re-established commons (morality) within the amorality of the market – & overturning current EU economic consensus!

— Patrick Noble (@BrynCocynFarm) October 20, 2017

Isn’t this the business model used by every other industry? And did the supermarkets’ battle for ever lower prices distort it?

— Justine Whittern (@newjustine) October 20, 2017

Others weren’t so sure…

In theory farmers could farm without subsidies and taxes could be reduced because food would be dearer, but doubt it could work in practice

— Andrew Bevan (@beefyfarmer) October 20, 2017

Also, where would incentive for innovation in production, marketing come from if not from the market?

— Joanna (@JoannaLidback) October 20, 2017

I think it’s a great theory. *IF* everyone played by the rules, then maybe the higher prices would motivate growers to focus on grain

— The Hippie Farmer (@TheHippieFarmer) October 20, 2017

It’s almost like we are seeing this with organics and nongmo. The consumer is paying the premium and the farmer is putting more $ in pocket.

— The Hippie Farmer (@TheHippieFarmer) October 20, 2017

I doubt this would ever fly here in North America, the consolidated food processing industry is a powerful lobby group.

— Viren D’souza™ (@Milkabot) October 20, 2017

I could see input cost going up. The only difference is that it would be passed on to the consumer

— Woody Van Arkel (@woody_VA) October 20, 2017

Legislation is expected to be prepared next year, according to reports by just-food.com.