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Meeting
Monday 6 May 2024

Trade relations under the watchful eye of the state

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The commercial relations monitoring committee, which brings together representatives of agricultural producers, processing industries and distributors, a tenu une réunion le 18 décembre. Stake : the distribution of value between suppliers and distributors in the context of the end of the crisis.

Alors que le cycle annuel des négociations commerciales pour 2021 (du 1er décembre 2020 au 1er mars 2021) is in progress, the conclusion is unanimous about discussions which remain difficult. In the meeting, where negotiations between suppliers and distributors must end at the end of February, the pressure is just as strong to reach agreements satisfactory to all parties. In a city, the food chain held up during this crisis but it is weakened by the lack of outlets, the costs incurred and the increase in raw materials. In this singular context, the government, by the voice of Julien Denormandie, Minister of Agriculture and Food, and Agnès Pannier-Runacher, Minister of Industry, calls for "the responsibility and commitment of distributors in trade negotiations which have started at the national level on degraded bases". The government asks that the spirit of the General Assembly on food be respected "for a fairer distribution of the value : agriculture should not be the adjustment variable ". The national agricultural and agro-food sector is suffering from the current crisis marked in particular by the very sharp reduction in certain outlets (restoration, event, export, etc.). This situation also occurs in a marked context, in a large number of sectors, by the increase in the cost of raw materials.

Responsible spirit
The ministers call on the responsibility of distributors to take better account of production costs by reversing the contractual proposal and using indicators in contracts. "It would be incomprehensible if the rise in production costs were not duly taken into account in the negotiation. Distributors are expected to undertake to demonstrate a spirit of particular responsibility in negotiations, especially for raw products and first processing products. "" All means will be used to ensure that the law is respected "they say. This is how, at their request, the DGCCRF remains strongly mobilized, by strengthening controls, to enforce the so-called Egalim food law, voted three years ago, aiming to guarantee an effective rebalancing of commercial relations and a better distribution of value between partners. Durant les négociations commerciales de 2020, the control services of the DGCCRF interviewed several hundred suppliers in order to follow "in real time" the progress of these negotiations and the integration of the elements of the law, in particular the use of cost indicators. Controls by the DGCCRF also focused on the supervision of promotions in value. Administrative sanction procedures are launched, including in the case of promotional advantages on loyalty cards circumventing legislation on promotions.

Controls and sanctions
L’année 2020 a aussi été marquée par les quatre amendes administratives (pour un total d’environ 10,6 million euros), notifiées par la DGCCRF à différentes enseignes de la grande distribution pour non-respect de la date du 1er mars pour la signature des conventions de 2019 avec leurs fournisseurs. Cette action a été fortement dissuasive puisque pour 2020 les conventions non signées à la date du 1er mars ont été très marginales. Proceedings for restrictive business practices are also pending before the Paris Commercial Court. Logistics penalties are also investigated to identify abuse and, if applicable, correct them, si nécessaire en utilisant le nouveau pouvoir d’injonction sous astreinte conféré aux agents de la DGCCRF par la loi n° 2020-1508 du 3 décembre 2020 dite DDADUE. Finally, the practices of international centers are subject to sustained vigilance and, where appropriate, appropriate actions. In 2021, the vigilance of the DGCCRF on these various points will remain sustained. otherwise, the ministers recalled that the law on the acceleration and simplification of Public Action (ASAP) du 8 décembre 2020 a permis de prolonger l’expérimentation sur le relèvement du seuil de revente à perte et l’encadrement des promotions et a pris en considération les demandes des acteurs économiques en ce qui concerne l’encadrement des promotions en valeur (art. 125 de la loi).

Ideas for the future
The first conclusions presented by Serge Papin, to whom a mission has been entrusted relating to the application of the Egalim law, chart paths for the future. A tool to provide transparency has been proposed. This tool could first be tested for certain sectors : it could serve as much of support for the mediator in his agricultural trade negotiations as for the various links in the sector to objectify the value brought back to the farm gate. Serge Papin also pleaded for multi-year negotiations, already permitted by law. A working group will be set up to explore this subject in depth, likely to pacify negotiations and set up virtuous medium-term partnerships along the food chain. Ministers finally welcomed the recently completed work of the Trade Practices Review Commission (CEPC) making recommendations on best practices for private label products. They want the work initiated under the aegis of the National Consumer Council on the labeling of the origin of processed foods and their ingredients to continue.

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