Fruits and vegetables quotations in France The RNM

Fruits and vegetables quotations in France The RNM System (Réseau des nouvelles des marchés - Markets News Network) Roma 19/12/2012 Monique Meizels Chef du service des bases d’information économique Direction Marchés, Etudes et Prospective

Summary • The Markets News Network : assignments, organization and methods • Conjunctural crises assessment and monitoring • Goals and valorization of Fruits and vegetables quotations

The RNM assignments : the network has aims to : • Get informations on market prices, observe transactions on fresh and perishable agro-food markets at each marketing stage in the business chain. • Establish reference official quotes for fresh and perishable agro-food products at different marketing stages. • Monitor and survey the economic and conjuncture situation on agro-food markets • Publish and disseminate information through news and quotations reports for : • Public authorities and administration • Customers and paying subscribers • Others nformation users grandezza testo didascalie

The importance of RNM in the agro-food prices monitoring system Production Prices Products / Marketing stage Forwarding stage/ 1 st marketing stage Prices Wholesale Markets Prices Retail Prices Fruits & Vegs RNM RNM + Panels Flowers RNM RNM + Panels Pig RNM RNM + Panels Poultry RNM RNM + Panels Cattle Quotations RNM + Panels Milk products Quotations RNM + Panels Fishing Fish auction places RNM + Panels Wines Quotations Surveys Panels Grains Quotations Surveys Panels Surveys

SURVEYS AND PROCEDURES ARE COMPLYING WITH A CERTIFIED QUALITY MANAGEMENT SYSTEM • A network with 78 agents in 17 branches located on the main production areas. • All network activities are realized under a certified ISO 9001: 2008 Quality Management System aiming at assessing the reliability and statistical representativity of collected information. • These activities are worked out on a yearly programmation basis with precise assignments and requirements from France. Agri. Mer.

PRICE MONITORING METHODS Survey Methods Frequency Production prices Face to face inquiries on production markets Daily/weekly Auction places Prices collecting (mainly in the West of France) Daily/weekly Forwarding Stage Phone surveys - 300 businesses - Daily Importation Phone surveys (ports) or face to face on international markets (Perpignan/Saint-Charles) Daily Wholesale stage Face to face inquiries on wholesale national markets (MIN) > 100 000 t, 270 businesses surveyed Daily Retailors Prices collection in supermarkets (150 + 30 Hard Discount stores) + 30 Organic stores Weekly

ASSESSING CRISES IN THE FRUITS & VEGETABLES’ MARKETS • RNM surveys are widely used to assess conjunctural crisis as it is defined by specific regulations. • A conjonctural crisis is evidenced at forwarding stage when the average current price is considered abnormally low compared to the 5 years average reference, over a period of 3 to 5 days. Vosges Matin. fr

THE MARKET INDICATOR : A CRISIS ASSESSMENT TOOL Example : cherries in 2011 36 marketed references – up to 17 quotations a day A marketed reference is a combination of a product, variety, size, origin, quality, packaging Each of these combinations is valuated at its own price Crisis assessment requires a national and representative price monitoring tool the evolution of which enables to assess and monitor a conjunctural crisis.

THE MARKET INDICATOR CAN BE AN APPROPRIATE ANSWER • • Calculation of the market indicator : each business day, a weighted average of quotes considered as representative of the prices trend of a given product is calculated ; Calculation of the week reference as an average of market indicators for the last five seasons except for the highest and the lowest values. • Comparison of the deviation between the MI of the day and the fiveyear average reference. • 25 products followed by market indicators (12 fruits, 13 vegetables)

THE CRISIS INDICATOR : AN EXAMPLE OF TOOL TO RECOGNIZE THE STATE OF CRISIS • The statement of the crisis involves two parameters whose level depends on the product - The threshold below which the price is considered "abnormally low" varies from 10 to 25% according to the perishable or storable nature of the product. - The period during which the situation is observed abnormally low prices varies between 2 -5 days depending on the duration of the campaign product • When the market indicator is below the "abnormally low“ level for a period thus defined, one considers that the product comes into conjonctural crisis • When the market indicator is back above threshold "abnormally low" for more than 3 consecutive days, the product is then considered out of the conjonctural crisis

MONITORING CRISES IN FRUITS & VEGS : PEACH AND NECTARINES IN 2011 A 42 DAYS CRISIS SINCE JUNE 16 TH

CRISIS ASSESSMENT TRIGGERS REGULATION MECHANISMS THROUGH : • Crisis information on the Réseau des nouvelles des marchés Web site • Distribution Margins lowering agreements signed between the Government and supermarkets companies (since 2011) • These agreements aim at reflating F&V sales thanks to lowered distribution margins and consequently retail prices. • This new tool is under public evaluation.

AGRI-FOOD PRICE MONITORING ASSIGNMENTS • To reinforce agri-food markets transparency and fair business through reliable, neutral and in real time price information for all players in the sector. • To deliver reliable and neutral information to all partners, i. e. : • EU • Government and administration • INSEE (National Statistics Instititute) • The “Observatoire de la formation des prix et des marges” (the prices and margins observatory). (Of. PM) • Professional sectors organizations • The press • The consumers • To Assess the conjunctoral and economic situation in agri-food markets and to alert when crises are likely to occur. grandezza testo didascalie

FOR A BETTER KNOWLEDGE. . . (For more information ? ) • The RNM website http: //www. rnm. franceagrimer. fr • The RNM website for Smartphone http: //m. rnm. franceagrimer. fr Grazie per la vostra attenzione Merci pour votre attention