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France is working towards new commercial relationships for the pig sector

The meeting served to discuss different contract options (farmers/abattoirs, farmers/abattoirs/processors, farmers/food suppliers, etc.), including volumes, prices and lengths.

7 September 2015
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The Minister of Agriculture of France, Mr. Stéphane Le Foll, met last 27 August with representatives of the pig industry to work towards the improvement of the commercial relationships between the actors in this sector: farmers, abattoirs, processors, distributors, and the Marché du Porc Breton, as well as the food suppliers and the Agriculture Chambers.

The meeting served to discuss different contract options (farmers/abattoirs, farmers/abattoirs/processors, farmers/food suppliers, etc.), including volumes, prices and lengths.

The contractualization may be a way of ensuring the margin for the produccer in the face of the price fluctuation, and also to ensure the supplies or the markets for the selling of the products for other links in the chain. The possible creation of “safety funds” related to the contracts in order to share the risk of the market fluctuations was also discussed. The Minister committed to make that the payments made to the safety fund benefit from a tax exemption. He also proposed the creation of a work group to identify the different kinds of existing contracts and to implement some experimentally.

They all agreed on the fact that the contractualization entails a small “revolution of the mentalities” in parallel with the changes that must be introduced in the Marché du Porc Breton, that is still basic for the setting of the prices.

Thursday, 27 August 2015/ Ministry of Agriculture, Agrifood and Forestry/ France.
http://agriculture.gouv.fr/

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