“Paying work with dignity is as much an affirmation of a human right as it is an economic and geopolitical fact” | EUROtoday

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Lhe concept of ​​“floor prices” is being launched into the talk on an honest revenue for farmers. If it carries ambiguities that typically give rise to reluctance within the agricultural world, we should right here level out the apparent: meals is crucial for human survival, not producing meals is just not an possibility. Therefore, the viability of producer remuneration have to be organized.

Guaranteeing an honest revenue is a matter of society, of sovereignty, of survival. Paying work with dignity is as a lot an affirmation of ethics and a human proper as it’s an financial and geopolitical reality. Let's overlook for a second the hackneyed opposition between what’s simply and what’s mandatory, the 2 are suitable.

If there’s a consensus within the latest disaster on the actual fact of guaranteeing a minimal revenue for French farmers, why does the notion of “floor price” then generate a lot controversy? Why, regardless of an enormous intervention of public funds and laws, can’t we set up what’s economically honest for the impoverished and precarious a part of French farmers? The solutions are essentially multidimensional and sophisticated.

A everlasting state of uncertainty

The unpredictability of costs and shops is without doubt one of the most destabilizing components for the operator. The volatility of agricultural costs finds its roots in a mixture of parameters equivalent to climate situations, state commerce insurance policies, hypothesis on uncooked supplies, geopolitical hazards, and so forth. In this surroundings, the costs of agricultural merchandise can change all of the sudden. , leaving farmers in a everlasting state of uncertainty.

Read additionally: Article reserved for our subscribers Raw supplies: “The volatility of agricultural prices is not inevitable, it is an economic choice”

The wheat market, for instance, has skilled a surge in three years linked to the invasion of Ukraine, going from 180 euros to greater than 400 euros per tonne, at present returning to 200 euros. (supply Euronext). Who can manage their manufacturing in such situations? The want for stabilizing mechanisms is apparent and quite a few initiatives have been tried in European agricultural historical past (assured costs, quotas, and so forth.) earlier than these “standards” have been vilified and deserted within the identify of a doctrinaire method to the market.

However, for twenty years, the hole has widened and plenty of farms have disappeared. Some producers hedge the chance linked to unpredictability by rising the scale of their operation, utilizing futures markets, and specialization. Others are attempting alternate options equivalent to honest commerce channels, which set up voluntary flooring costs.

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