Retailers and suppliers reach agreement in France: common rules to reduce tensions and speed up annual negotiations

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The French agri-food sector is attempting to usher in a more constructive phase of annual price negotiations between industry and retailers. Six trade associations—including ANIA and FCD, along with Pact'Alim, the Consumer Business Liaison Institute, the French Federation of Businesses and Entrepreneurs, and La Coopération Agricole—have signed a new charter of principles to foster a more balanced and less confrontational dialogue during the three-month negotiations that began on December 1st.

The charter, supported by the Ministry of Agriculture, aims to ensure a "calm atmosphere" during discussions, promoting respect for professional specificities, the prevention of disputes, and a more transparent approach to business relations. Among the commitments undertaken is the focus on SMEs, requiring differentiated treatment and the conclusion of negotiations by January 15th, with a recommended maximum of five meetings.

The document also encourages the promotion of fresh produce and better information on food origin, with the aim of supporting agricultural supply chains and contributing to the country's food sovereignty. This theme was reiterated by Minister Annie Genevard, who emphasized that "negotiations between suppliers and distributors have a significant impact on the entire agri-food chain and on national food sovereignty" and the need to reduce a level of tension that is "unique in Europe."

Despite the associations' signature, the charter has not yet received formal government approval, as reported by Le MondeFrance remains one of the few European countries to concentrate price negotiations in a single three-month period each year, a model that over the years has often led to clashes, ultimatums, and delays in agreements.

In 2023, to accelerate the decline in consumer prices, Paris even introduced a law to advance negotiations, moving the deadline from March to January. The new agreement thus marks a concrete attempt to stabilize relations between retailers and industry. "This text charts a more pragmatic path for the sector," commented Judith Jiguet, general delegate of the FCD, calling for "sustainable progress" based on listening and dialogue.

The progress of negotiations in the coming months will be the first test of the effectiveness of the new charter and the ability of stakeholders to transform shared principles into operational behaviors throughout the supply chain.

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