September 21, 2012

France proposes measures to ease rising grain costs

In order to protect consumers from rising food prices, the French government has proposed measures to help their farmers deal with rising costs, for feed grains in particular, in the longer term.

The plan aims to protect the French livestock and food industry. It includes immediate measures and more structural measures to limit price volatility.

There are three levels to the plan. At national level, moves are proposed to increase grain storage capacity, expand production of plant proteins, and stop biofuel production from food crops, regardless of investment or jobs in the sector.

Payments will be made available to farmers in financial difficulty due to rising costs of production. Funding will also be made available to upgrade sow housing, to comply with the EU's 2013 pig welfare requirements.

The government also said it will review 2013 agricultural taxes in order to improve incomes for farmers.

At international level, France will work through the G20 alliance on co-ordination of policies in major agricultural countries, and initiatives to increase agricultural production.