French supermarkets accused of higher markups on organic fruit and vegetables

Report says bio shoppers pay more while farmers receive a smaller share

Organic produce is subject to a double penalty, says report
Published Modified

Supermarkets in France impose much higher price markups on organic (bio) fruit and vegetables than on their conventionally grown counterparts, according to a study by Que Choisir Ensemble.

The consumer group's findings, reported by Le Parisien, estimate that the gross margin on organic produce is, on average, 81% higher than on non-organic equivalents. It condemned what it described as “an opportunistic margin policy in a niche market”.

As an example, the report cited tomatoes, finding that shoppers pay an average of €5.84/kg for organic produce, compared with €3.26/kg for conventional tomatoes.

Of the retail price, farmers receive €2.19/kg, or around 37%, for organic tomatoes, compared with €1.52/kg, or about 47%, for conventional ones. Meanwhile, the large retailers' (grandes surfaces) gross margin is estimated to be 113% higher on organic produce.

Higher supermarket margins, combined with increased production costs, mean that “organic fruits and vegetables are subject to a double penalty that makes them even less affordable,” Que Choisir Ensemble said. It added that the practice was “structured and deliberate”.

The study comes shortly after a report by a Senate inquiry accused large retailers of “predatory” practices against manufacturers and farmers. “Out of every €100 spent on food, €8 goes to farmers, €14 to manufacturers, €35 to imports, and €40 to retailers,” Green Party Senator Antoinette Guhl said.

The figures are disputed by retailers. “Higher prices for organic products primarily reflect higher production, logistics and preservation costs,” said Isabelle Senand, director of research at the Federation of Commerce and Distribution.

Charging points are being installed to attract shoppers

'Loss leader' electric car charging points

Supermarkets are increasingly using electric vehicle charging stations as loss leaders to attract customers.

Michel-Edouard Leclerc, president of Leclerc, confirmed the strategy. “This will allow us to offer discounts in the form of coupons, Leclerc coupons, and so on. We are going to install 10,000 charging stations by 2035.”

Meanwhile, Lidl France, which plans to invest €13 million next year in expanding its charging network, said the stations are also intended to bring more shoppers into stores.

“It is also to attract customers. We already have the largest network of charging stations in France. We have more than 5,500 charging stations at over 1,000 supermarkets in France,” said Lidl France president John Paul Scally.

The supermarket investments form part of a wider expansion of France's charging network. President Macron has said operators have committed to deploying 240,000 additional electric vehicle charging stations by 2030.

Other environmental news includes:

Tree trunk beehive

An inventor in Deux-Sèvres has developed a tree trunk-shaped beehive (ruche) in an effort to help protect bee populations.

The Ruchex beehive is designed to recreate the habitat of a hollow tree trunk, providing a natural environment for bees rather than maximising honey production, said its inventor Michel Furter, who won a prize at the Concours Lépine, the annual French inventions competition founded in 1901.

“We use expanded cork for the circular shape, and on top, either local wood or a lime-sand plaster,” Mr Furter told France Bleu. The hive can be placed at the back of a garden or among trees.

Adopt a hen for organic eggs

Poule Pour Tous, launched in 2017 by Thomas Dano, rehomes some of the 50 million egg-laying hens that are slaughtered each year in France once they reach around 18 months old.

The association works with organic and free-range farmers, allowing households to adopt hens that would otherwise be culled. Availability varies by department and can be checked on the organisation's website.