Stéphane Le Foll, French Minister of Agriculture, met last week with the actors in the pig industry, a sector that has gone through serious economic problems in recent months, due in part to the Russian embargo.
During the meeting, the French Minister proposed new measures to support the sector, such as a new call for financial aid for improvement projects worth €45 M, which will be implemented shortly. This is in addition to the PCAE (farm adaptation and competitiveness plan —Plan de compétitivité et d’adaptation des exploitations agricoles), which will mobilize over €200 M per year between the State and the Regions during 2015-2020. Similarly, in order to facilitate access to credit, a public bank guarantee fund has been created to facilitate access to bank loans for farmers.
On the other hand, in the face of distribution permanent promotions, which affect the value of the product, Stéphane Le Foll recalled that the Commercial Code allows to regulate the periods when promotions can take place, which is why the Minister asked the industry to reach an agreement before the end of April. If no agreement is reached, the Minister shall issue an Order in this regard.
The Minister also stressed that the current pricing model must also evolve in order to create more stable prospects for farmers and better reflect the reality of markets and trade. Professionals have begun discussions to achieve a balance between the various forms of commercial relationship: Spot market, futures or deferred contracts... This scheme must also address the Group on Animal Feed and other stakeholders in the sector. The objective is to develop specific proposals by June.
Stéphane Le Foll also asked the Mediator of agricultural trade relations to help the sector contributing to the deliberations on these issues (promotions framework, development of new pricing strategies such as contracting).
To address the industry's future together, including the Government, the Minister proposed that all actors commit themselves to the task, through a pork industry Agreement to be signed in June at the General Assembly of the Porcine National Federation.
Tuesday, March 31, 2015 / Ministère de l'Agriculture, de l'Agroalimentaire et de la Fôret/ France.