Farmers and managers of large stores from Lozère face-to-face to dissect the EGALim law

Agriculteurs et directeurs de grandes surfaces face-à-face. MIDI LIBRE – M. P

At the invitation of the FDSEA and JA unions of Lozère, the local managers of the Hyper U and Intermarché stores came to listen to the breeders' explanations, in terms of production costs, Tuesday February 20, 2024, on the market. exploitation of Sylvain Chevalier in Allenc. 

In the stable of Sylvain Chevalier's farm in Arzalier in the town of Allenc, the electric milking machine is working at full speed. The cows and calves ruminate quietly. In a corner, FDSEA and JA union officials from Lozère, farmers and managers of large supermarkets face each other, this Tuesday, February 20, 2024. A meeting where it is a question of explaining the Common Agricultural Policy (Cac) , the production costs of farmers: "CAP aid helps consumers pay less for food. This aid is not increasing, we must find other remuneration. The EGAlim law must be applied so that production costs are taken into account, explained the union officials. 

Milk, an example of farmers' anger

To illustrate the point, Sylvain Chevalier explained his part of Pac : "We are a family farm, with 75 dairy cows, from milk delivered to Lactalis, 580,000 liters per year. And ten Aubrac breed beef cows. Pac premiums represent 20% of our turnover." The operator then detailed what the production of milk (Cerfrance Lozère data). In a long enumeration, the figures came out, for 1000 liters of milk produced  : 124 € for cattle feed, 56 € surface costs, 109 € breeding fees, 166 € of mechanization, 68 € building costs, 49 € miscellaneous costs, 45 € land, loans and capital remuneration. "There are still the guys to pay, noted Sylvain Chevalier. It would take 1.5 minimum wage per partner. Which would give 130 € for 1000 liters and 20 € more for social security contributions." This total excludes the sale of animals and Pac aid."We arrive at a production cost of 0.514 € the liter of milk. If we held that price, farmers would earn their living. However, in 2023, the price of a liter of milk was 0.411 € per liter. 100 &euro missing for 1000 liters of milk produced." And remembering that the price of a liter of milk in January in supermarkets was one euro  excluding tax (1.21 € tax included).    

Jean-Michel Brun, director of Hyper U in Mende responds

Is the EGALim law respected in your brand ?

Yes we respect it for all our products that we produce. Our purchasing centers apply the law. We must act locally to ensure that the law applies. 

Is it possible to make up these 10 cents on the price of milk ?   

It is our role to bring this back to the forefront. our purchasing centers. You have to go get those ten cents. But automatically this will impact the consumer. The difference from first-price milk is 0.94 centimes per liter, that of Lozère & 1.25 €. We sell the same quantity. There is an appetite for local products. 

What to do to quickly help producers ?

Act locally for milk and meat. Tripartite negotiations are needed to find out whether the EGALim law is properly applied. We can act in particular on our distributor brand. We will take a closer look at what we buy directly, we must be virtuous.  

"For this to work, this floor price must be applied with the EGALim" law,added the breeder. Ten cents more, that doesn't seem undrinkable", supported Hervé Boudon, president of the JA, not without irony . Provoking the reaction of large retailers: "We do not have the right to sell at a loss and there should be a threshold for you Also. Our margin on the liter of milk, 8 cents." 

Olivier Boulat, breeder, then began another estimate concerning meat animals. With the same observation, production costs of 6.20 € per kilo of carcass for Charolaise, purchased by wholesalers for €5.49. That is a difference of 71 cents in loss for the farmer, and even less income for his farm. 

The directors of large stores present: Jean-Michel Brun, Hyper U Mende; André Dalle, Intermarché Netto Saint-Chély; Thierry Nazon, Intermarché Netto Mende; Geoffroy Goury, Intermarché Netto Langogne. I subscribe to read more