Grain and meat producers in France on Wednesday signed an agreement on the establishment of contracts to limit the volatility of prices of livestock feed, the National Farmers Union (FNSEA) announced.
Fifteen professional organizations (for cattle, pigs, poultry, dairy, cereals ...) have signed this agreement which shall come into force on 1 July, FNSEA said in a statement.
Two types of contracts will be offered in early July: the first between collectors and animal feed producers, the second between feed manufacturers and farmers.
The goal is to "smoothen the prices," while international cereal prices have rocketed in recent months causing a surge in prices of animal feed.
This smoothing must allow meat producers to anticipate their costs and thus stabilize their incomes.
The ambition is to sign contracts covering 25% of the volumes for animal feed, with a view to eventually cover 40% of the cereal volume, FNSEA said.
With the agreement signed FNSEA now returns the ball to the distributors. Distribution must in turn “play the game" in implementing the agreement of 3 May, FNSEA said. Promoted by the Minister of Agriculture, Bruno Le Maire, the agreement provides for a renegotiation of the price of meat between producers and distributors as soon as the price of animal feed exceeded the alert status.
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