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France reorganizes fruit-veg industry
France
Wednesday 14 May 2008
Green light to Producer Organization’s Associations (POA) devoted to fruit and vegetables’ marketing in France. The Country’s antitrust authority has recently approved the proposal backed by Agriculture minister Michel Barnier to reorganize the industry.
According to what stated in the Common Market Organization (CMO) - for what concerns in particular possible dispensations to the right of competition - the encouraged reorganization allows to strengthen the producers’ role in front of retailers, which hold 74% of the industry’s total sales.
The POAs will have the role to improve their negotiation power; on the other side, according to the Antitrust, it is to be clarified the role of the Governance AOPs, which are supposed to regulate the actions to be taken product by product.
It is therefore considered acceptable the information exchange on volumes and prices to reduce the uncertainty of the offer (mainly due to the climate); however, the authority explains, “it is not tolerable a direct intervention on prices, which opposes to competition”.
The antitrust authority is more inclined to support solutions such as contracting the relations between producers and distributors, as well as income granting methods.
According to what stated in the Common Market Organization (CMO) - for what concerns in particular possible dispensations to the right of competition - the encouraged reorganization allows to strengthen the producers’ role in front of retailers, which hold 74% of the industry’s total sales.
The POAs will have the role to improve their negotiation power; on the other side, according to the Antitrust, it is to be clarified the role of the Governance AOPs, which are supposed to regulate the actions to be taken product by product.
It is therefore considered acceptable the information exchange on volumes and prices to reduce the uncertainty of the offer (mainly due to the climate); however, the authority explains, “it is not tolerable a direct intervention on prices, which opposes to competition”.
The antitrust authority is more inclined to support solutions such as contracting the relations between producers and distributors, as well as income granting methods.
