Shops told to sell tomatoes at a loss
Government decree forces supermarkets to slash prices to help struggling French producers
SUPERMARKETS have been ordered to slash the price of French tomatoes and sell them at a loss to help producers who are in "crisis".
The most-consumed fruit and veg product in France is the subject of a new government decree, because the price paid to producers has fallen significantly in recent weeks.
The price cut is part of an agreement signed last year by most of the major supermarket chains to support French fruit and vegetable producers.
When wholesale rates fall significantly below the average over the previous five years, the government can issue a decree forcing shops to entice customers with lower prices while paying producers more for a limited period.
Tomatoes are the biggest revenue-earner for supermarkets' fruit and veg sections, but prices paid to producers have fallen by between 30% and 35% in the past year. They typically receive between €0.60 and €0.70 per kilo.
Angélique Delahaye, president of Légumes de France, told Le Figaro that tomato producers had suffered because of the poor weather and increasing competition from the Netherlands, Belgium and Spain.
The crisis is also being blamed on a health scare in May that led to many consumers avoiding salad ingredients after an outbreak of E.Coli in Germany which was wrongly linked to cucumbers.
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