Upwind distributors facing EGalim 2

This law intended to protect the income of farmers limits the ability of retailers to obtain price reductions during annual negotiations with manufacturers.

Distributors fear paying the price for EGalim 2, voted on Thursday evening in the National Assembly on first reading. The first version of this law, which entered into force in 2019, failed to significantly improve the income of farmers. The deputies therefore submitted, with the support of the government, the book on the trade. They voted on Thursday evening for provisions that frame the annual tariff negotiations between farmers, manufacturers and distributors much more strictly.

The fundamental measure of version 2 of EGalim consists in securing agricultural prices, and therefore farmers’ incomes. Prices paid to producers will now automatically increase based on production indicators. In the event of a rise in prices, producers will therefore no longer be the only ones to suffer from the inflation of their costs: they will be able to pass them on downstream.

Manufacturers therefore feared being caught between agricultural prices that they could no longer negotiate.

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