Falling consumption, farmers throwing in the towel, others discouraged to begin with: to help organic producers overcome difficulties, the Minister of Agriculture announced this Wednesday a “crisis envelope” of 60 million euros, accompanied by measures to stimulate demand.
From a farm in the Oise, Marc Fesneau has also pledged that state canteens (ministries, prisons or armies) meet the target of 20% organic products on their menu here by the end of the year. “We will start by setting an example ourselves,” he told reporters.
The Ministry of Agriculture estimated this Wednesday that the public order for state canteens would mean additional support “around 120 million euros.”
“We did not put the means”
To guarantee a regular output of organic food, the Food Law (or Egalim, 2018) had set for 2022 this minimum objective of 20% organic in collective catering (school canteens or hospitals). But “we did not provide the economic means” to do so, acknowledged a source from the Ministry of Agriculture. Therefore, the share of organic products is capped at around 6%.
“We are still far from 20% but certain examples such as the city of Bègles (70% organic), 44,000 inhabitants, or Epinal (68% organic), 33,000 inhabitants, show that it is possible to reach the target and exceed it to a large extent,” he explained. on Tuesday to Laure Verdeau, director of Agence bio, responsible for developing and promoting French organic agriculture.
In addition, a new “mass” communication plan on the consumption of organic products will be launched, financed with three million euros from the extensive investment program France 2030 announced in October 2021 by Emmanuel Macron.
Organic sales drop of 7% in 2022
The organic market began to turn around in 2021 after years of double-digit growth, which had fueled conversions to this type of farming without pesticides or synthetic chemical fertilizers. But consumers, pressured by inflation (+15% yoy in April for food), are turning away from it in favor of cheaper alternatives. Last year, sales of organic products fell more than 7% at supermarkets, according to panelist NielsenIQ, and now supply is exceeding demand.
A first “emergency aid” to organic farmers, of 10 million euros, was registered at the Agricultural Show at the end of February. The sum, delivered by Prime Minister Elisabeth Borne to agricultural professionals during a closed-door session, had been described as “anecdotal” or even “derogatory” by several organizations. Hardly elected president of the majority agricultural union FNSEA, Arnaud Rousseau asked in mid-April for a “massive plan”, of “50 to 100 million euros”.
“Needs are estimated at 151 million euros for 2022, with a risk of worsening in 2023,” the National Federation of Organic Agriculture (Fnab) said in a press release on Monday. The organization also pleads for long-term support and calls for increased support for organic producers through the Common Agricultural Policy (CAP).
France behind on its targets
The Court of Auditors had estimated in June 2022 that “the support policy for organic farming carried out by the Ministry of Agriculture has ambitious objectives, without the provision of sufficient means.” In addition to 20% organic in canteens, France has also not reached its target of 15% of UAE in organic by 2022 (10% currently). The new official objective (18% of organic surfaces in 2027) already seems compromised: the growth in the number of new organic producers has slowed down.
In 2022, 5,245 new organic producers were identified, compared to 7,706 in 2021, according to Agence bio. At the same time, 3,380 organic exits were recorded, compared to 2,510 in 2021. The balance between inbound and outbound “is still positive but reflects a real slowdown in conversion dynamics,” the agency said in April.
Source: BFM TV
