This is not admissible said the head of State

After two hours of discussions yesterday in the Elysee Palace, the Government signed an agreement with distributors on the margins that they take on fruit and vegetables in a crisis. Officially, all signs are committed to lowering the price to the consumer in the event of collapse.

"What we have agreed here, is to formalize our policy and to make a commitment that allows to verify to everyone that in a crisis, it does not increase the margins, but rather on the decline", said Jérôme Bédier, Chairman of the Federation trade and distribution companies.

"I was initially quite angry as it was happening, quite perplexed." "But finally I realize that it can be a good device," commented Michel-Edouard Leclerc hand. "The side binding and class of the device adds to credibility," said the leader of the Leclerc group.

Distributors "should either reduce the price of sale to the consumer or increase the purchase price at the producers", said the President of the Republic, Nicolas Sarkozy. "In the crisis of the tomato, the producer price declined 32 cents compared to the average of the past three years and simultaneously labels have decreased to 24 cents, which means that the gross margin of distributors increased by 15 eurocents on average." "This is not admissible", said the head of State.

These agreements will be renewed each year before the beginning of the marketing of fruit and vegetables year. In the event of non-signature, distributors whose turnover exceeds EUR 100 million will be subject to an additional contribution to the tax on the commercial surfaces, warned the head of State.

The Government will introduce as early as this week, by an amendment to the Senate in the Bill of modernization of agriculture, "an incentive device for an agreement on the moderation of the margins reported for fruits and vegetables, between the State and the distribution crisis", still said Nicolas Sarkozy.

Furthermore, "unfair commercial practices will be strengthened controls". It is "the consideration of freedom of tariff negotiations", according to the President.

In another order of ideas, and to better inform the consumer, the head of State received of farmers and agri-food industry agreement on reference to the French origin of the products containing more than 50 of ingredients from the national territory.

Discounts and rebates deleted

A broad consensus emerged among all actors of the food world on the signing of contracts between producers and buyers, who will have the obligation to make a proposal written to their suppliers. A support for the unions to prepare now contracts types interprofessional discussions.

In the absence of agreement, the Government determine by Decree before the end of the year the scope of this contractual relationship in the dairy sector and the fruit and vegetable sector.

On the other hand, it was decided to delete the practice of discounts, rebates and discounts in the fruit and vegetables. The framework of the price determined after the sale, it will be very precisely defined under the agricultural modernization bill. This concerns essentially the relationship between wholesalers and farmers, who accept the principle without having an opportunity in a period of plethora. The FNSEA said yesterday very reserved on the effectiveness of these measures.