Trade bodies representing French farmers, food groups and retailers have agreed a mechanism to adjust for the impact of commodity price volatility on production costs in the poultry, beef and pork sectors.
Announcing the move, French agriculture minister Bruno Lemaire commented: “If we did nothing on this volatility issue, thousands of breeders in France would disappear.”
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The agreement, to be applied on a voluntary basis, will see price negotiations triggered when there are “excessive variations” in animal feed prices. For example, a price alert would be issued if, over a period three consecutive months, feed prices jumped 10% or more year-on-year.
