This is a first for eight years, and an effect of the Egalim 2 law according to the government. At the end of the trade negotiations which ended Wednesday morning at 8 a.m. between manufacturers and distributors, food prices will increase in 2022. The increase, according to certain professional federations, would reach 3% on average. But the differences will be strong between the sectors.
This hadn’t happened since 2014, when food prices were each year in deflation of the order of 1% to 2%, the result of the price war between brands. After the introduction of the law in 2019, the decline was limited to 0.1% and 0.3%. In contrast, non-food products , they will undergo deflation or, at best, will remain at the same level. “There is clearly an Egalim 2 effect, we believe on the side of the office of the Minister of Agriculture, Julien Denormandie. As required by law, agricultural raw materials have been preserved”.
Preserving agricultural raw materials
In contrast, the negotiations were tighter than in other years in the context of rising costs, linked to the Covid crisis. The proof, the level of signatures is lower this year compared to 2021, due to the brakes of two major distributors. Its rate would thus be higher than 80% in most brands, against just above 50% for these, deemed to be tougher in discussions.
Almost all SMEs succeeded in concluding agreements. Some large groups continue to have their ears pulled. Among the companies that have still not signed contracts, 60 have contacted the mediator, ten more than last year. The ministers had already indicated this. The goal is “zero tolerance on law enforcement”. This will result in the immediate implementation of controls, with penalties for those caught at fault.
For the government, the Egalim 2 law has therefore produced the expected effects, and demonstrated its necessity. “One of the challenges is to preserve our food sovereignty”, we remind the ministry. France nonetheless lags behind other European countries in terms of growth. If food prices increased in France by 1.5% in one year at the end of January, according to INSEE, in Germany, where relations are different between economic players, the increase reached almost 5%. .