French broker to deal to protect poultry producers from feed prices

20-05-2011 | | |

France’s minister of agriculture has brokered a voluntary agreement to offer protection against market volatility by committing poultry and livestock producers to re-opening negotiations on animal feed payments each time feed prices rise, in three successive months, to more than 10% above the level of the same month in the previous year.

The agreement should ensure that French livestock producers receive more for their poultry and other animals, officials stated. It has been signed by representatives of 10 farmers’ groups, associations representing French processors and retailers and two independent national store chains.

In France, price negotiations between retailers and their suppliers generally occur only once a year, during February and March. The most recent round of negotiations was especially tough for the livestock sector and poultry in particular.

The application of the new voluntary agreement is due to start in July, coinciding with the next contracts between grain producers, feed manufacturers and farmers. Its terms also require the signatories to take part in a revision of negotiating procedures, which will begin with poultry meat, beef and sheep meat as their food chains are thought to be simpler than the pork chain.

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