Agro-food manufacturers see minimal price increase

In 2026, agro-food industry manufacturers achieved only a +0.05% average price increase, far below the 3.5% they had requested, according to the Observatory of Annual Negotiations. This small increase reflects the challenges faced by the sector in passing on costs to consumers.

Negotiations to begin amid economic challenges

The annual commercial negotiations between distributors and manufacturers, which take place from December 1st to March 1st, are set to begin again, with both sides anticipating difficult discussions. The 2026-2027 negotiations are expected to be particularly challenging due to the war in the Middle East and the summer heatwave, which have increased production costs.

Government seeks agreement on food policy

The government is holding a preparatory meeting at Bercy this afternoon with representatives from distributors and manufacturers. Originally scheduled for October 28, the meeting was postponed due to the agendas of the involved ministers. The objective is to reach a "responsibility pact" and "balance" that reconciles the issues of food sovereignty and purchasing power.

Distributors demand transparency and concessions

However, the main distributors had threatened to boycott the meeting, through the voice of the Federation of Commerce and Distribution (FCD), citing "non-negotiable prerequisites" and calling for more "transparency" from manufacturers regarding the cost of agricultural raw materials. They also requested differentiated treatment for SMEs.

Agro-food sector reacts to distributor demands

This caused the anger of the agro-food sector, which accused the large distributors of not taking into account the additional costs borne by companies due to the war in the Middle East. Jean-Luc Duval, president of La Coopération Agricole, emphasized the need to first agree on the economic realities of their companies before negotiations begin.

Price trends show mixed results

According to the Observatory of Annual Negotiations, certain categories such as salty groceries, fresh products, beverages, and dairy products experienced a decrease in net price between -0.3% and -0.5% in 2026. Only frozen foods and sweet groceries recorded an increase of about 1%, although there was no consensus between manufacturers and distributors regarding the magnitude of this increase.

Industry leaders warn of long-term decline

Jean-François Loiseau, president of the National Association of Food Industries (Ania), lamented that for 15 years in France, the agro-food sector has suffered deflation every year, with the exception of the first two years of the war in Ukraine, where it was necessary to pass on the increases in raw materials. He expressed concern that without passing on social charges, energy, and taxes, companies would die, leading to the decline of the French agro-food industry, which creates jobs.

SMEs call for fairer negotiations

In a context of economic and geopolitical instability, the negotiation cycle beginning on December 1 should not reproduce the imbalances observed in recent years, according to Pact'Alim, a federation representing SMEs and mid-sized companies in the agro-food sector. The organization stated that for a majority of companies, the agreements concluded in early 2026 did not cover the increase in their agricultural and industrial raw materials.