The boss of Système U Dominique Schelcher on Tuesday formally denied
“any desire to subvert French law”
in particular through the use of purchasing centers based abroad, in the midst of anger among farmers who are demanding better income.
“I formally deny any desire by Système U to subvert French law with our European partnerships
,” declared Dominique Schelcher on BFMTV/RMC.
“Système U has not set up a purchasing center outside France based abroad, Système U has joined an existing partnership set up by a German cooperative (...) and the Dutch. It was they who decided to put the headquarters of this organization in the Netherlands
,” he defended.
“In the contract that we sign with the industrialists, who are only the large industrialists, (...), we write that we undertake to respect the essential elements of the
Egalim law
, that is to say the share of agricultural raw materials and the indexation clauses
,” added Mr. Schelcher.
“We put our purchasing quantities together with the Germans and the Dutch to weigh against groups for whom France is not much
,” according to him.
“Most of the negotiation of Système U continues to be done in Rungis at our headquarters
,” he also underlined.
A system running out of steam
He also
“disbelieved”
the idea that Système U would seek its raw materials abroad.
“Système U has decided very firmly, despite the interest we might have in seeking raw materials abroad for the manufacture of our products, not to do so
,” he insisted.
Mr. Schelcher also judged that
“the current negotiation system is running out of steam”
as commercial negotiations between supermarkets and large manufacturers end on Wednesday evening.
“Negotiating for only two and a half months, not being able to adapt throughout the year, it no longer holds, we are at the end of the system”
he estimated.
Dominique Schelcher also believes that
“we need to increase the number of tripartite contracts”
, in discussions taking the example of milk where farmers could take a seat around the table during commercial negotiations with manufacturers.
To guarantee compliance with the Egalim laws, which aim to protect farmers' income, the government plans to increase controls and is expected to impose
“heavy sanctions”
against three unnamed companies.