“French Tomato Producers Denounce Abusive Margins by Supermarkets”

2023-04-25 09:37:54

In a press release, Légumes de France cites the example of the “84% margin rate” observed on supermarket shelves for grape tomatoes produced in France.

Par
Julien Da Sois

Published update

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On average, a kilo of retail tomatoes cost 5.14 euros in March, an increase of 25% in one year, according to INSEE. Tatsiana Yatsevich (Caftor) / Adobe Stock

New illustration of the war between supermarkets and producers. In a statement published at the end of last week by Légumes de France, the French tomato producers “denounce abusive margins on the part of certain large retailers“, qualifying the latter as”arsonist firefighter who suffocates French producers».

To support its point, the federation of vegetable producers relies on data from the national agricultural office, FranceAgriMer. “The gross margin on vine tomatoes from France had already reached 1.82 euros at the end of March, i.e. a margin rate of 84% against 28% on the 3-year average“, notes Vegetables of France. Over the last week studied, that of April 10-16, “it was 1.64 euros, i.e. a margin rate of 73% against 55% on average over 3 years“, adds the federation. “The margin rates observed at the start of the campaign are quite unprecedented“, laments Yann Le Cunff, animator at the Association of Tomato and Cucumber Producers of France (AOPn).

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It should be remembered, however, that the gross margin for fruit and vegetables correspondsto the unit commercial margin of large retailers considered as a whole (purchasing centres, logistics platforms for brands and stores)» et «can also integrate wholesaler’s trade margin“, describes FranceAgriMer. The margins observed are therefore not to be attributed solely to the account of the last link in the chain.

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Signs fight back

By applying, according to the producers, such high margins, the mass distribution causes “endangering the financial health of producers and excessively high prices for end consumers diverting them from French products in favor of imported products (origin Morocco)“, castigates the press release from Légumes de France. “An attitude that reflects the lack of consideration of these brands for their food sovereignty commitments, which are nevertheless declaimed at length in advertisements.“, criticizes the federation. “It could ultimately divert consumers from French productsadds Yann Le Cunff.

On the side of the signs, we defend ourselves from making our butter on the backs of the producers. “The margin we take on French or Spanish tomatoes is the same, and has even gone down“, we are assured at System U: the professionals have collected part of the inflation of inputs on their margins, we plead. “What producers actually blame us for is not having only French tomatoes on the shelves“, we think we know, the reason being that they are “more expensive than Spanish or Moroccan“. The other brands contacted did not react.

Like other fresh fruits and vegetables, the price of tomatoes has soared thanks to the inflationary shock which has also hit producers. On average, a kilogram of retail tomatoes cost 5.14 euros in March, an increase of 25% in one year (4.09 euros in March 2022), according to INSEE. In detail, according to figures from FranceAgriMer, a kilo of round tomatoes from France (57-67 or 67-82 mm in bulk), in supermarkets and supermarkets, cost 4.89 euros in March (+ 10% compared to April 2022), compared to 4.39 euros for its Spanish equivalent (+8%) and 4.05 euros for its Moroccan equivalent (+98%).


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