Why an increase in the price of certain food products on February 1, 2019?

This law only targets consumer foodstuffs known as

calling products

because they are made by major food companies and used by retailers in their promotions to appeal to consumers. They represent 7% the total turnover of food products. The direct products of agriculture will not increase.

Hitherto, supermarkets could sell these calling products at a loss, but since the resale threshold at a loss did not allow them to cover the essential costs (logistics, staff, breakage, transport), they shifted their margins to other products, in particular agricultural products.

The law now requires that these products be sold at least 10% besides that they were bought. Distributors will therefore have to rebalance their margins in favor of agricultural products by making their purchase price more remunerative and fairer for farmers.

For example : when a brand bought a product from the manufacturer €1, it had to resell it at a minimum €1 on the shelf. With this legislation, the same appeal product cannot be resold for less than €1.10.

These measures will be tested over two years with a monitoring system that will assess their impact on the agri-food chain to ensure that the value generated is better shared.