Commercial negotiations between major retailers and agri-food companies on shelf prices ended this Wednesday evening.
However, they are far from final, as contracts have been reached for only a quarter of the products.
So, will the promised price drop?
How much will we pay for major national brand products in the coming year? On average, large retailers demand a 2% markup from their suppliers. Manufacturers are demanding an increase of 5%. At this time, one of the five files is still under discussion and the debates are tense in the home stretch. “This is not a negotiation based on the government’s request to reduce prices. We had a lot of pressure and little time to express ourselves,” Underlines a representative of the agri-food industry in the press release.
Salmon and olive oil prices are expected to increase
“Every year it’s stressful. This year it’s even more stressful because the calendar was brought forward a month. It was decided too late and so we’re in a difficult context, adding inflation. And in recent days, the agricultural crisis.” , Accepts mass distribution expert Philip Gotzman. According to information from TF1, some reductions should appear on the shelves, for example on grain-based products such as pasta. In contrast, salmon and olive oil prices are expected to increase.
And inevitably, given the context, agricultural raw materials are at the center of the discussion. “Receiving requests to reduce prices is unacceptable. In the end, it is the farmers who have to suffer!”, protesting the food manufacturer. Some distributors have agreed to the gesture. “Given the context, an increase in products containing agricultural raw materials is understandable”, says a major retailer. For its part, System U says it has accepted the increase in milk.
-
Also read
Food: Prices of private label products are falling
But for Lidl France president Michel Biereau, distributors shouldn’t be the only ones making the effort. They want more transparency in prices. “We have to control, but we also have to control at home and businessmen”, he said. Bersi mediators intervene in fewer than fifty cases to help both parties find a settlement. The goal is to avoid breach of contract. If the manufacturer does not reach an agreement with the brand before midnight, its products will be removed from the shelves.
