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Are food manufacturers and distributors preparing to begin their final annual discussions, during which they negotiate their prices and business plans? Olivia Grégoire, the Minister of Commerce, announced this Monday the launch of a “transpartisan government mission to reflect on a reform of the global framework for trade negotiations”. She spoke as part of the debates in Parliament on the bill aimed at bringing forward the 2024 annual negotiations by six weeks, with the hope of accelerating the reduction in shelf prices: the deadline is set to December 31 for SMEs ( plus €350 million in turnover), as of January 15 for the others.
This bill composed of a single article, examined urgently, is not the ideal framework for an in-depth reform of trade negotiations. “We do not decide in haste to modify one of the most structuring objects of our economic life, and one of the most protective commercial negotiation frameworks for our agricultural producers without carrying out extensive reflection,” believes the minister. The debate around such a reform will therefore be on the menu for 2024. “It is certain that in the world of price volatility which seems to be ours and which, undoubtedly, is set to last, re-examine the economic model designed in a period when price stability was essential is a necessity,” explains Olivia Grégoire.
The organization of negotiations around an annual deadline is a French exception. Elsewhere in Europe, distributors and brands negotiate all year round depending on price changes. This is already the case in France for distributor brands. “An actor who wins his negotiation benefits for a year. Conversely, an actor who loses his negotiation suffers for a year. This date is an amplifier of tensions,” summarizes Guillaume Kasbarian, president of the Economic Affairs Committee.
