Retailers yesterday committed to moderating their margins in the fruit and vegetables sector, an agreement that has partly satisfied producers, according to Le Point.
'When there is a crisis, there must be an agreement to moderate margins so that the producer sees his price go up and the consumer is not penalised,' French president Nicolas Sarkozy said at a meeting at the élysée with farmers and representatives of seven main retail groups in France.
According to Mr Sarkozy, a crisis occurs when the price paid to the producer is below the cost of production.
Farmers in France, who recorded an average revenue drop of 34 per cent in 2009, are said to be largely happy with the agreement.
Angélique Delahaye, president of Légumes de France, said that Mr Sarkozy had given the go-ahead for a new way of working between retailers and producers, and was 'confident', but 'vigilant'.
Bruno Dupont, president of the FNPF (the national federation of fruit producers), praised Mr Sarkozy's mention that the next obligation would be to establish contracts to ensure decent remuneration for producers.
However, some were more critical. The Confédération paysanne said that there was nothing in the agreement to guarantee a fair price for farmers.
Retailers who fail to sign agreements with producers to moderate their margins during crises will face an additional tax, according to Mr Sarkozy.
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