The deputies have adopted provisions that allow important advances for the farmers in the farmework of the first reading of the draft bill regarding transparence, the fight against corruption and the modernisation of the economic life called «Sapin 2».
For the companies subject to compulsory written contractualisation (cow milk, fruit and vegetables...), the setting up of a framework agreement between the purcharsers (processors) and the producers' organisations (PO) or producers' association (PA) will allow to rebalance the ratio of power. The provisions foreseen will also allow to take more into account the selling price of the processed products for setting the prices paid to the farmers so as to ensure a fair sharing out of the value.
At the same time, the provisions ensure the obligation of mentioning, in the commercial agreements between the manufacturers and the distributors, the average estimated price paid to the producers by the companies subject to compulsory written contractualisation.
An ammendment of the Government adopted by the deputies also foresees the possibility, for the agrifood companies, to negotiate contracts that span over a maximum of 3 years, in order to have a better visiblity of their prices and volumes. These contracts will include a compulsory clause regarding the revision of the prices that may lean on the production costs public indices.
The draft bill foresees the entrusting of an additional power to the President of the Observatory for the setting up of the prices and the margins for notifying the Presidents ot the trade courts of the companies of the food industry that have not published their accounts. The President of the court will be able to lodge a payment demand to the company, after this notification, that may reach 2% of its daily turnover in France.
Thursday, 9 June 2016/ MAAF/ France.