France: EGALIM Laws 1 and 2 attempt to boost farmers' income

Published 2022년 1월 14일

Tridge summary

The article explains the root cause of low farmer pay as a result of an imbalanced distribution of margins and added value between producers, processors, and retailers. The 2018 adoption of the EGALIM 1 law aimed to correct these imbalances by ensuring fair pricing for producers, improving product quality, and promoting healthy, safe, and sustainable food. The law also reversed the pricing construction, allowing farmers to propose prices to processors and distributors, and introduced measures for price renegotiation and control of promotional operations. However, a government-commissioned report on the EGALIM 1 law highlighted some positive but also counter-productive effects, leading to the passage of the EGALIM 2 law on October 18, 2021, which focuses on contractualization between stakeholders to address the shortcomings of the earlier law.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The origin of the low remuneration of farmers stems for the most part from an unbalanced distribution of margins and added value between producers, processors and small, medium or large retailers. In a highly competitive sector and the first links in the chain, farmers did not have sufficient leverage to defend their selling prices and were also under strong pressure. Following the holding of the Estates General on Food, a first law entitled Egalim was adopted on October 2, 2018, to restore certain balances in trade negotiations and put an end to certain practices deemed pernicious and harmful to farmers' income. What are the three objectives of the EGALIM 1 law? - Pay the fair price to producers to allow them to live with dignity from their work - Strengthen the health, environmental and nutritional quality of products - Promoting healthy, safe and sustainable food for all. One of the key measures of the EGALIM 1 law was to reverse the construction of prices. From now on, ...
Source: Pleinchamp

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