what’s the ground value, proposed by Emmanuel Macron? | EUROtoday

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un ground value, an answer for farmers’ earnings? Emmanuel Macron shocked on Saturday February 24 by proposing the creation of a ground value for agricultural merchandise.

Called for a very long time by the Peasant Confederation, this measure, which goals to assemble costs bearing in mind the price of manufacturing – fees, suppliers, uncooked supplies, and so forth. – of farmers, has already been the topic of a proposed legislation on LFI in November. This was then rejected by the National Assembly, with the Minister for Consumer Affairs, Olivia Grégoire, denouncing a undertaking paying homage to “Cuba or the Soviet Union with the successes we know of them”.

Protecting agricultural earnings

But confronted with the anger of farmers, the president defended the institution of those ground costs on Saturday. These, declared Emmanuel Macron, “will make it possible to protect agricultural income and not give in to all the most predatory practices which, today, are sacrificing our farmers and their income”. “In each sector, an indicator must be constructed and it must serve as a floor price to guarantee agricultural income,” specified the President of the Republic.

What is it concretely? This ground value, under which agri-food producers will be unable to go down throughout negotiations with farmers, could be set sector by sector and calculated from manufacturing prices. According to Emmanuel Macron, they need to be primarily based on indicators estimating what, for instance, the manufacturing of a kilo of meat or a thousand liters of milk prices a farmer.

Created by the Egalim II legislation, these indicators exist already, even when they’re nonetheless insufficiently taken into consideration to achieve guaranteeing a good earnings for farmers. Built by inter-professional organizations, organizations which carry collectively producers, producers and distributors, their purpose is to estimate the manufacturing price of every agricultural product and to set the minimal promoting value. The Interbev inter-professional affiliation thus estimated that lamb meat needs to be offered between 9.61 and 11.49 euros per kg in 2022 to ensure breeders an earnings equal to 2 minimal wage per thirty days.

The threat of too low a value

But sure issues come up: along with not all the time being revered, these indicators are primarily based on manufacturing prices which differ tremendously between areas. Without market regulation, and in a context of European competitors, the French ground value subsequently dangers being both too low and ineffective in responding to farmers' issues, or too excessive and uncompetitive in comparison with the remainder of Europe.

The FNSEA fears that the ground value is simply too low, and performs extra the position of a glass ceiling than a assure, by knocking down farmers' earnings. The growth of indicators additionally poses an issue: along with various in line with European areas, manufacturing prices differ relying on the kinds of exploitation. For instance, a liter of milk from a herd within the mountains doesn’t price the identical value to supply as a liter of milk within the plains. How to determine on an indicator frequent to those completely different breeding strategies?

Finally, the primary agricultural union is worried concerning the institution of mounted ground costs, opposite to the logic of the Egalim legal guidelines, which take note of the fluctuation of manufacturing prices. These might subsequently flip towards farmers within the occasion of a powerful fluctuation, triggered, for instance, by Russia's entry into the battle in Ukraine.

A possible lack of worldwide competitiveness?

Conversely, if the ground value is simply too excessive, a lack of competitiveness of French merchandise internationally is to be feared. If Emmanuel Macron talked about the extension of the measure on a European scale, Jean-Marc Bernier, the final director of Lactalis France, stated he feared seeing a drop in exports, French milk, at the moment half exported , risking, in line with him, changing into too costly to compete with overseas shares.

An similar downside might come up with cereals, of which France is a web exporter. During years of low costs and huge harvests, the applying of a ground value relying on manufacturing prices might thus stop French cereals from discovering an outlet on the world market.