At the start of 2022, the Egalim 2 law is implemented. After the failure of the first Egalim law, the Government revised its copy. He proposes a more binding text. The goal is always the same: better remunerate producers. This law concerns several agricultural sectors, in particular beef production. Many Creuse farmers will therefore be impacted.
What does this text contain?
In 2018, the Egalim 1 law opened a door, so to speak: it allowed developing contracts between farmers and their buyers to ensure fairer remuneration. “Boredom, regrets Jean-Baptiste Moreau, the deputy for Creuse at the origin of this law, is that this tool was not used“.
The equalim law 2 therefore makes these contracts compulsory.. This implies that each breeder will now have to sign a document with the horse dealer or the slaughterhouse who buys his animals from him, in order to define the price at which the meat will be bought. This contract will be multi-year : it will be valid for two, three or four years, which will allow the farmer to have visibility on his income.
– Nina Valletta
The price will be calculated based on of the farmer’s production costs. An official index already exists. It takes into account the raw material that is used to feed the animals, fuel, the farmer’s salary, etc. Thereby, the Creuse breeders should no longer sell at a loss.
Direct sales and clock markets (such as Chénérailles and Ussel) will not be subject to this system of contracts.
Tensions to be expected during negotiations
Christian Arvis, the president of the FDSEA de la Creuse recognizes that this method of calculation is “a revolution”. Cattle ranchers could sell their meat, he says 70 to 80 cents more per kilo, compared to current prices.
From January 1, 2022, farmers will therefore have to enter into negotiations with their first actors. Christian Arvis expects tense exchanges : “This is something that is going to be very hard to put in place. Throughout the sector there are operators who want to keep their little comfort by doing everything to ensure that contractualization does not take place “.
These people want to continue to live well on our backs
To avoid the same failure as the first Egalim law, the Egalim 2 law provides sanctions in the form of fines for operators who refuse to set up these contracts, or who refuse without valid reason the prices demanded by farmers.
– Nicolas blanzat
The first fines will not occur immediately. The Government estimates that it will take several months for the sector to reorganize itself.
In addition, France is currently in the process of to discuss with Italy, which buys a lot of grazing animals, (in particular Creuse). The Government would like to put in place the same system of contracts based on production costs with our transalpine neighbors. It could come into effect this summer.