Non-compliance with Egalim laws: the Court of Auditors calls for sanctions

Barthélémy Philippe // Credits: Jean-Luc Boujon / Europe 1 6:16 a.m., February 15, 2024

The beef industry in the sights of the authorities. According to a report from the Court of Auditors, the provisions of the Egalim laws are rarely respected in the beef sector. The institution asks the General Directorate for Fraud Repression (DGCCRF) to impose sanctions. The farmers' revolt is on hold, but the fire is still smoldering. Agricultural unions say they are ready to resume blockades if the progress promised by the government is not implemented quickly. Among these is the promise to enforce the Egalim 1 and 2 laws, which protect farmers' income. 

The second Egalim law, passed in October 2021, makes it compulsory to sign a written contract, setting the price and terms of sale of agricultural raw materials between producers and buyers. However, these contracts are very rare. Particularly in the beef sector, according to the Court of Auditors. Over the past two years, fraud enforcement has carried out 28 checks in this sector. 

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From pedagogy to sanctions 

Result of these checks: in only one case, the contract concluded between producer and buyer complied with the law. A worrying situation, according to Pierre Moscovici, first president of the Court of Auditors: "This contractualization is made precisely to balance the balance of power between producers and buyers. Here, we see that there is no or few contracts. And therefore, we must progress. Without a contract, which is the basis of the negotiation, there cannot be any progress in price, that is to say an improvement in the remuneration of producers at all levels of the sector.

Until now, fraud enforcement officers have been very understanding with those in the sector who do not apply the law. An understandable educational approach during the first months of application of the law, considers the Court of Auditors. But now is the time to crack down on those who do not apply Egalim. "We must move on, I believe, to a phase which is less educational, a phase which is more corrective or more repressive with on the one hand injunctions when we observe anomalies, and on the other hand sanctions, when there are shortcomings", declared Pierre Moscovici.  

In recent weeks, the executive's discourse seems to have changed in this direction. Bruno Le Maire brandished exemplary sanctions of up to 2% of turnover. Four industrial groups are in Bercy’s sights.