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

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

According to the consumer group’s calculations, which were reported in Le Parisien, the gross margin on organic produce is, on average, 81% higher than non-organic equivalents. It condemned “an opportunistic margin policy in a niche market”.

As an example, it cited the price of tomatoes, revealing that shoppers pay an average of €5.84 per kilogram for organic ones, compared to €3.26 for standard ones.

It added that within this price, the amount paid to farmers is much lower for organic products (€2.19, or about 37%) than for conventional ones (€1.52, or about 47%). The large retailers’ (grandes surfaces) margin, meanwhile, skyrockets by 113%.

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

The study was published shortly after a report by the investigative committee of the Senate (the upper house of the French Parliament), which lambasted large retailers, accusing them 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,” said Green Party Senator Antoinette Guhl.

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

‘Loss leader’ electric car charging points

Charging points are being installed to attract shoppers

In other supermarket news, it has emerged that electric charging stations, the installation of which is rapidly increasing, are now being used as loss leaders in order to attract customers.

Michel-Edouard Leclerc, the president of Leclerc, confirmed the strategy. “This will allow us to offer discounts in the form of coupons, Leclerc coupons, and so on. And we’re going to install 10,000 more by 2035 – 10,000 in total.”

Meanwhile, John Paul Scally, the president of Lidl France, which plans to spend €13 million next year on the installation of the “bornes”, said: “It’s 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.”

President Macron has stated that operators have committed to deploying 240,000 additional electric vehicle charging stations by 2030. 

Tree trunk beehive

An inventor in Deux-Sèvres has created a tree trunk-shaped beehive (ruche) in an effort to save the bees.

The Ruchex beehive forms a habitat perfectly suited to bees for their conservation, not for honey production, said its inventor Michel Furter, who won a prize at the Concours Lépine, the prestigious 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 the garden or among trees.

Adopt a hen for organic eggs

Poule Pour Tous, launched in 2017 by Thomas Dano, offers a second adopted life to some of the 50 million 18-month-old egg-laying hens that are slaughtered each year in France. The association works with organic and free-range farmers – check availability in your department at poulepourtous.com