Marc Fesneau, Agriculture Minister, stated that large retailers still have the ability to take action to reduce food prices, particularly through promotions.
We can get discounts up to 34% today on promotions. However, we find that most large retailers are at 21% so they have margins so they can ensure that they carry a portion effort,” he stated on France Inter.
The State is responsible for a portion of inflation. French taxes pay for the purchasing power and other measures, as well as food. Everyone must do their part. However, this cannot be done at the expense of looking back over the decades, when it was always the farmer, the producer, who couldn’t find his margin.
The 2018 Food or “Egalim” law, which was passed to curb the market for low prices and help farmers in an era of low inflation, set a limit on promotions at 34%
The Minister of Economy Bruno Le Maire announced that a delegation from the General Inspectorate of Finances (IGF), was to inspect compliance with the law. This law requires distributors to sell products at a minimum margin. Producers to receive 10%
Bruno Le Maire, who suggested Monday that producers might not be benefiting from the provisions of the law, said that they would have to “think about the possibility” of changing them. He suggested for example 50% promotions instead of 34% and “slashed prices” for those who really need it.
Christiane Lambert, president and chief executive of the majority agricultural union FNSEA said, “Not the right solution.” Christiane Lambert is the president of the majority agricultural union FNSEA. She supports the creation of a food coupon and calls for greater transparency on both the distributor and industrial sides.
“Does this law actually work?” Marc Fesneau said Saturday that there are many cases in which the promotion mechanism is not being implemented. Michel-Edouard Leclerc was the president of the E. Leclerc strategic committee. He had requested at the beginning April that the 10% rule be partially suspended in order to lower its selling price.
