Trade associations in France have signed a charter aimed at easing tensions between manufacturers and retailers around annual negotiations on price.
The document was signed between Association Nationale des Industries Alimentaires (ANIA), La Fédération du Commerce et de la Distribution (FCD), and four other agricultural, food and drink and retail trade associations – Pact’Alim, L’Institut de Liasons des Entreprises de Consommation, Fédération des Entreprises et Entrepreneurs de France and La Coopération Agricole.
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The commercial negotiations, which began yesterday (1 December), sets the prices of branded grocery products on supermarket shelves in France and will continue for three months.
Under the new charter, industry representatives have committed to promote “a calm climate” during the talks, according to France’s Ministry of Agriculture, “through a set of principles of dialogue, consideration of professional constraints, and prevention of disputes”.
The list of commitments also includes providing SMEs “differentiated treatment”, and has called for negotiations with these businesses to be completed by 15 January.
According to a joint statement from the six industry associations, the charter has also recommended a maximum of five negotiation meetings take place with SMEs.
The charter also calls for promotion of sales of fresh produce and improving information available to consumers around the origin of products, “all with the aim of better supporting supply chains and contributing to food sovereignty”.
In a statement, Annie Genevard, France’s Minister of Agriculture, Agri-food and Food Sovereignty, said: “Trade negotiations between suppliers and distributors have a significant impact on the entire agricultural and agri-food value chain and contribute to the nation’s food sovereignty.
“Easing the level of tension we have seen in recent years – unique in Europe – was therefore essential. I am counting on all stakeholders for its full implementation on the ground.”
Despite the charter signing by trade representatives, it has not yet been approved by the government, according to French newspaper Le Monde.
While prices are negotiated on a regular basis elsewhere in Europe, in France, trade negotiations happen annually over a three-month period.
Talks between retailers and manufacturers however have often resulted in fall-outs over price in the past.
In 2023, in a bid to speed up the reduction of prices on consumer goods, France introduced a law to force manufacturers and retailers into early price negotiations, moving the deadline forward from March to January 2024.
Commenting on the latest charter in a post on LinkedIn, Judith Jiguet, general delegate of the FCD, said: “This agreement now charts a more pragmatic path for the sector. We will pursue it methodically, listening, convening, proposing, and keeping dialogue at the centre, because I am convinced that this is how sustainable progress is built.
“This charter is only a first step, but it is a step that counts. We will follow developments throughout these negotiations.”
