While the prices of many inputs such as wheat and oil have fallen sharply in recent weeks, the government has been surprised several times by not seeing these reductions pass through to the prices paid by consumers.
The cause, according to most distributors, is a calendar of commercial negotiations, too regulated in France, which theoretically ends at the end of March of each year.
So that the price reductions become visible more quickly, the Government has decided to bring forward the conclusion of these negotiations through a bill that will be presented to the Council of Ministers this Wednesday and subsequently debated in the National Assembly.
This text, “a necessary measure” according to Bercy, therefore provides for manufacturers and distributors to reach an agreement before January 15, 2024.
“Enough to allow consumers to gain two, two and a half months” in terms of price reductions, underlines the Ministry of Economy.
“Aim for the biggest ones”
“It is about facing the emergency,” we insist at Bercy, while confirming that this text will only apply to this round of debates.
Remember that this bill covers negotiations between the 75 largest food suppliers in France, which hold more than 50% of the distribution market share and not the VSEs and SMEs in the food sector.
In reality, negotiations have already started, they will just end sooner. It remains to be seen whether they will lead to real price reductions. The government emphasizes that it does not participate in these debates and does not set objectives, although it repeats that “it is aimed at the largest.”
However, this Wednesday on BFMTV, Dominique Schelcher, head of Système U, is not very optimistic.
Finally, regarding the distributors’ request for a moratorium on the Descrozaille law regulating promotions of hygiene products, the government passes the ball to parliamentarians, underlining that this text was voted unanimously.
Source: BFM TV
