President Emmanuel Macron’s government will present measures to reign in supermarket price wars in an attempt to strike a balance between farmers who feel they’re underpaid for their produce and consumers who feel they’ve lost purchasing power.
A “law for a balanced commercial relationship in the agricultural and food sector, and for healthy and sustainable food” will be presented by Agriculture Minister Stephane Travert at Wednesday’s cabinet meeting, Macron office said in a statement.
About a third of French farmers make less than €350 a month, according to the main health insurer for the sector, while their average income is just €15,000 a year.
At the same time, the tight finances of many French families was underscored last week when crowds descended on Intermarche stores after it discounted Nutella, a Ferrero chocolate-hazelnut spread, by 70%.
Tightening Rules
“I met with the head of Intermarche yesterday, and I said this couldn’t happen again,” Finance Minister Bruno Le Maire said on RTL Radio Thursday.
Selling at a loss is illegal in France outside of certain sales periods. Le Maire said the government’s plans to cut payroll tax cuts and encourage greater profit-sharing at companies would lift purchasing power.
According to Le Figaro, the measures to be announced Wednesday are expected to include tightening up rules against stores selling at a loss, helping farmers group together to negotiate higher prices, stricter standards for treatment of farm animals, and a larger share of organic food in school canteens.
Most of these measures were agreed during a December 21 meeting between the government and representatives of farmers and supermarkets.
News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.
