France's Agriculture ministry ploughs in €60m to help struggling organic farmers

France’s Agriculture Ministry has announced an additional €60 million in emergency aid for organic farmers facing a sharp slump in sales of organic food, but the sector says it’s far from enough.

Food prices in France have gone up by an average of 15 percent over the last year, driving consumers to look for cheaper alternatives. Organic products have been hardest hit. AFP - GEORGES GOBET

After years of double-digit growth that encouraged farmers to take up organic farming and turn away from using pesticides or synthetic fertilisers, the market for organic food in France began to dive in 2021.

The cost of living crisis has made things worse. The increase in food prices overall of more than 15 percent over the last year has pushed consumers away from organic in favour of cheaper alternatives. 

Sales of organic food in French supermarkets dropped by more than 7 percent in 2022, and as much as 12 percent in specialised organic stores a survey by NielsenIQ showed.

As a result, some farmers are throwing in the towel. Others are discouraged from converting to organic.

“It would be our collective failure if we lost organic producers,” said Agriculture Minister Marc Fesneau earlier this week on a visit to a dairy farm in the Oise region west of Paris, where not a single farm has converted to organic over the last two years.

Aid and support

Fesneau announced a €60m “crisis package” on Wednesday, in addition to the initial "emergency aid" package of €10 million, agreed at the end of February at the Agricultural Show.

He also announced measures to stimulate demand.

State-funded canteens (ministries, prisons, armies) will – finally – have 20 percent organic food on their menus by the end of the year.

The objective, laid down under the 2018 "EGalim” law, was due to be reached in 2022 but the share of organic food has plateaued at around 6 percent.

"Let's start by putting our own house in order by being exemplary," said Fesneau, calling on local authorities – which finance school canteens in particular – to do the same.

Symbolic

The aid package has failed to impress the sector

"At this stage, the state's commitment is symbolic," said Philippe Camburet, president of the National Federation of Organic Agriculture (Fnab).

"I'm waiting to see if local authorities follow suit. Today they are saying: 'We'll pay the gas bills and see what's left'' in the budget."

Camburet considers the €60m – the terms of which will be defined at a later date – are still a long way off relieving the cash flow problems in the industry.

"In view of the scale of the organic farming crisis, we need €150m in aid, just for the pork, milk, fruit and vegetable sectors," said Mathieu Lancry, head of Forebio.

• More French people turn to food banks as inflation bites
• French consumers face major price hike for supermarket goods

Fesneau also highlighted the responsibility of large-scale distribution in the slump in consumption of organic products.

They are less prominent on supermarket shelves than before. "And yet the visibility of a product determines its sale," he added.

He said he would talk to supermarkets about the fact retailers make a higher margin on organic products than on other products – contributing to increasing their price.

France aims to have 18 percent of agricultural land devoted to organic farming by 2027, compared to the 10 percent today. 

Fesneau said that ambitious goal would be maintained.