April 8, 2015

France implements measures to support swine and poultry industries

Measures to revive the lacklustre swine and poultry industries have been announced by the French minister of agriculture, food and forestry.

On the swine industry, Stéphane Le Foll met key stakeholders in Paris on March 31 to discuss measures to counter highly degraded prices, partly as a result of the Russian embargo.

Private storage measures to control supply to the market and raise prices have been agreed upon. A multi-million euro relief fund has also been made available to help farmers in the sector. Foll has also asked banks to offer favourable rates for farmers seeking to renegotiate loans.

He also spoke of the need to improve the value of the brand of French pork, calling for an end to near-constant promotions on pork. "Permanent promotions lead to a loss of reference for the consumer and destruction of value," he said. Foll warned that if the industry could not reach an agreement on reducing promotions by the end of April, the government would consider using the Commercial Code to regulate the periods during which promotions could take place.

"The current pricing model must evolve to give more stable prospects for farmers and better reflect the reality of markets and trade in the sector," added Foll. He urged all stakeholders in the industry to participate in discussions on pricing and promotions and proposed that a document should be put forward and signed at the General Assembly of the Porcine National Federation in June.

For the poultry industry, French poultry farmers are this week receiving cash hand-outs from a €15 million (US$1.08 millon) fund, designed to help farmers improve the quality of exported products.

Foll had negotiated the aid with the European Commissioner for Agriculture and Rural Development after export subsidies were removed in July 2013.

"Since 2012, I fought to help the poultry sector because I have always believed in its future and in its potential," Foll stressed. "I mobilised support with the different links in the chain and I am pleased that, thanks to this support and willingness of operators in the sector, both export operators and the entire export industry today have a positive outlook."