LA Tribune- You are one of the rare actors in favor of the “floor price” mentioned by Emmanuel Macron among the possible solutions to solve the agricultural crisis. It is also rumored that you suggested this idea to the Prime Minister. What do you imagine?
Michelle Biero- I never talked about “floor prices”, which could effectively be ceiling prices, but about “guaranteed minimum prices”. Lidl came up with this idea in 2018, when we proposed three amendments to the Egalim I law (not accepted, editor’s note): the establishment of guaranteed minimum prices, but also minimum selling prices for distributors and a ban on the promotion of livestock products. These “guaranteed minimum prices” will be the reference prices based on average production cost indices which the first purchasers of agricultural raw materials are required to respect. If bought at a lower price, they have to prove to the state that the producer is not selling at a loss. I spoke to the Minister about it again this Friday Responsible for Customer Affairs, Olivia Gregoire. The challenge now is to better define how we go in such a direction, should this choice be made. I also ask a question:
What solutions do those who criticize this idea suggest?
The President of the Republic spoke of “applicable” prices to the judges. Is this your idea?
I don’t want to protest anything. I am neither a lawyer nor a politician, but I try to support the agricultural world and suggest solutions to overcome the current crisis. But the average indicators of production costs, which already exist in some sectors, are built on a solid foundation. However, while these indices dictated that traditional low-fat milk should be paid 46 cents per litre, today everyone pays 41 cents.
It is objected that this will lead to higher prices for consumers…
I do not agree with this at all. Today, a head of cauliflower is bought from a farmer for 25 cents and resold in some department stores for 4.09 euros. There is room! And today, it does not bother anyone! If everyone sells a liter of milk for 1 euro, we will not sell less. We don’t worry about selling for more than that Big brand soda… The question is: do we want to continue to have peasants in France? If so, it is unacceptable to pay milk at the current price.
It is also objected that this may harm the competitiveness of French products in the European market.
That is why the President spoke of the European Iglim Law. The problem of fair income is also shared by farmers in different Member States.
During the show, you signed numerous tripartite agreements. You now have 5,000 growers involved in a tripartite agreement with Lidl. Are you in favor of the generalization of this model in which contracts between processors and distributors should respect the remuneration negotiated with farmers?
I would certainly be in favor of including in the law an obligation for distributors to fix the prices of certain quantities of their supplies through tripartite agreements, whether they are distributor brand products or major national brands.
Today, negotiations with big brands are governed by the Economic Modernization Law (LME), which you suggest amending or even repealing before reviewing the Egalim laws once again. What exactly is the problem?
According to the Economic Modernization Law, which regulates 70% of food products sold in large retailers, the starting point for negotiations is the price proposed by agro-entrepreneurs, which is not transparent at all. Negotiations then concern the services provided by the distributors.
By definition, under this law, prices are built on a trailing margin, regardless of producers’ remuneration. And today, the LME completely tramples the Egalim laws, trying to reverse the mechanism.
Emmanuel Macron suggested the conclusion of an “agreement on the moderation of margins” with producers and distributors in September 223. The idea, once abandoned, seems to be making a comeback. What do you think, what do you think?
I will agree on the condition that everyone respects it. However, today the government refuses to even name the high marginers.
To defend their emerging buying centers, your French competitors accuse Lidl of selling products bought in France elsewhere in Europe. What do you answer?
Lidl has real buying centres, which buy products at a European level which are distributed to all its stores in Europe. This represents 25% of the products sold by Lidl France. Our French competitors do not have purchasing centers abroad, but service negotiation centers, which are completely disconnected from the question of fair prices paid to producers. At this level, we do not know that the farmer exists.